The rating on Melville, N.Y.-based Arrow Electronics Inc. reflects the company's satisfactory business position and intermediate financial position in the face of challenging macroeconomic industry conditions. The electronic distribution industry's highly competitive and 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 component and computer product distributors. The company reported revenue of $18.7 billion in fiscal 2010. Recent information technology (IT) spending cyclicality, lower growth rates, and competitive pricing pressures make it more difficult for distributors to maintain profitability levels. Nevertheless, Standard&Poor's Ratings Services expects acquisitions and ongoing efficiency improvements to enable Arrow to maintain adequate
