Premier Farnell plugs into web
WEB sales and the launch of local language websites have helped boost Premier Farnell's third quarter results.
The global multi-channel, high service electronics distributor, which has its UK offices in Leeds, said today that US web sales were up 43% year-on-year with total eCommerce sales now accounting for 28% of total marketing and distribution division (MDD) sales.
Websites in Polish, Hungarian and Czech have also been launched as part of the firm's East European expansion helping to increase third quarter web sales by 31% compared to the same quarter last year.
Total eCommerce sales now account for 28% of MDD sales in the quarter.
Expansion is to continue geographically with Premier announcing that it has signed Letter of Intent to acquire India-based Hynetic – already one of the company's distributors with sales offices in eight major Indian cities.
The decision to focus Premier Electronics – Premier's Chinese business – away from the lower margin maintenance repair operations to Electronic Design Engineer (EDE) segment has also paid off with sales growth rising by 11% in Q3.
Expansion plans saw the addition of two new branches in Chengdu and
Shenzhen, enabling Premier to offer next day delivery to more than 95 major Chinese cities.
Harriet Green, Premier's chief executive, said:
“Building on our current momentum and the further improvements seen since the end of the quarter, we anticipate delivering continued progress in the fourth quarter and expect to deliver results in line with our expectations.
“The third quarter saw continued year-on-year progress in both sales and operating profit across all segments at constant exchange rates. We have clearly demonstrated that we are growing faster than the market as the rigorous implementation of our strategy drives more profitable growth.”
Q3 year-on-year sales growth of 4%; up on the second quarter with MDD Americas accelerating to report the highest quarterly growth in the year to date at 4.9%.
Profit before tax was up 10% and earnings per share from continuing operations up 10%, despite the impact of exchange rates.
Formed in 1996, Premier Farnell markets and distributes products and services throughout Europe, North America and Asia Pacific with operations in 21 countries and approximately 4,100 employees worldwide.
The company has a global customer base of more than two million customer contacts worldwide, stocks in excess of 500,000 electronic products, has access to four million more and represents 3,000 manufacturer brands.
Companies within the Premier Farnell Group include Farnell, Newark, CPC Premier Electronics, Farnell-Newark, MCM, Akron Brass, TPC Wire & Cable and Cadillac Electric.
Its multi-channel approach includes fully transactional websites, contact centres, field sales force, trade counters, branch network, catalogues and direct mail.
The London Stock Exchange group recorded sales for the financial year ended January 28, 2007 of £823.1m and operating profit of £82.3m.
