The ratings on Melville, N.Y.-based Arrow Electronics, Inc. reflect a leading market position and consistent operating performance in the face of challenging industry conditions. These factors are offset by a leveraged, but improving, financial profile. Arrow is one of the leading global electronic components and computer products distributors. Although visibility is extremely limited, industry growth appears to be moderating in 2005, and highly competitive market conditions continue to pressure pricing levels. Arrow reported revenues of $2.7 billion in the quarter ended March 31, 2005, up a modest 4% from the year-earlier period. EBITDA margins (adjusted for capitalized operating leases and excluding special charges) remained flat, at about 4.7%. While ongoing cost reductions and efficiency improvements are expected to offset margin
