Promotions, Financials Dominate Distribution

Distribution is back to the forefront of chanel news. Tech Data has reported strong 1Q numbers. Avnet Technology Solutions, meanwhile, has promoted an idustry veteran to the helm of its U.S. operation.

Tech Data's quarterly income of $23 million, compared to $9.9 million one year ago, was bolstered by strong sales and earnings in Europe (sales there grew 16 percent.) Revenue rose an average of 9 percent. Looking ahead, Tech Data expects sales of more than $6 billion in Q2, which would beat current analyst expectations. Tech Data's numbers underscore the benefit of maintaining a global position at a time when the U.S. economy is slowing. There's no indication in the distributor's latest numbers that U.S. IT product sales are tanking (sales are expected to be flat in Q2 in the American market), but single-digit percentage growth is expected in Europe.

Competition among distributors is certainly growing in the current business environment. Avnet has just promoted Jeff Bawol to head its Technology Solutions Group in the Americas, which gives him responsibilty for setting overall strategic direction and overseeing sales growth in the U.S. Canade and Mexico. Bawol has 30 years of experience at Avnet, an indication there are important challenges ahead in the U.S. market


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