The ratings on Melville, N.Y.-based Arrow Electronics, Inc. reflect a leading market position and consistent operating profitability in the face of challenging industry conditions. These factors are offset by a leveraged but improving financial profile and weak debt-protection measures. Arrow is one of the leading global electronic components and computer products distributors. Economic weakness and reduced levels of technology spending resulted in steep revenue and earnings declines in 2001 and 2002, particularly in the electronic components sector. However, industry growth should continue into 2005, supporting expectations for revenue and earnings growth for Arrow. Arrow reported revenues of $8.1 billion and net income of $159.8 million in the nine months ended Sept. 31, 2004, both up strongly from the previous year.
