Top-tier position in global components distribution industry (along with Avnet Inc.); Geographic and customer diversity; Successful employment of acquisitions in a consolidating industry; and Moderate, but increasing (because of consolidation) barriers to entry. Highly competitive, relatively low-value-added industry; and Variable profitability because of volatility in industry demand. The rating on Melville, N.Y.-based Arrow Electronics Inc. reflects the company's leading market position and good operating performance in the face of challenging industry conditions. The industry's highly competitive, relatively low-margin characteristics, as well as the potential for variable profitability and debt protection metrics resulting from volatile industry demand offset company strengths. Arrow is one of the leading global electronic components and computer products distributors. The company reported revenue of $16 billion in
