The ratings on Melville, N.Y.-based Arrow Electronics, Inc. reflect a leading market position and significantly improved operating profitability, offset by a leveraged financial profile and debt protection measures that are still weak for the rating level. Arrow is one of the leading global electronic components and computer products distributors. A forecast of 4%-5% growth in industry spending on hardware and telecom equipment (according to Gartner Dataquest) supports Standard&Poor's Ratings Services' expectations of sustained annual revenue growth by Arrow in 2004. Arrow reported revenues of $2.7 billion and net income of $66.9 million in the quarter ended June 30, 2004, both up strongly from the previous year. Operating performance also showed significant improvement; the EBITDA margin for the June
