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Avnet Appoints William Amelio Interim CEO, Cuts Q4 outlook

Avnet, Inc. AVT 1.57% revealed that it appointed a member of its Board of Director, William Amelio, as interim CEO effective immediately. Amelio would replace Rick Hamada, who resigned his position from both the CEO, as well as the Director. The company also slashed its forecast for the fourth quarter that ended July 2.

Avnet said it expects its adjusted earnings between $0.80 and $0.86 a share, down from the earlier projection of $0.95-$1.05 a share. Similarly, the company also reduced its sales forecast to $6.15-$6.25 billion from the previous guidance of $6.25 billion. Street analysts are looking for earnings of $1.00 a share on revenue of $6.27 billion for the same period.

The company blamed the shortfall on an ERP implementation in the Americas region of the Electronics Marketing operating group. The company indicated that its sales from the region are predicted to be about $100 million less than its earlier forecast. The company added that the region also spent increased costs to maintain customer deliveries.

Avnet said the impact to sales was minimal in the June quarter. However, it expects the increased costs to continue and would likely impact the first quarter results.

The company indicated Amelio brings over three and half decades of management and industry experience to his new role as he served in senior positions at global publicly traded companies. He has spent most of his career managing global technology enterprises.

The company's Chairman, William Schumann, said, "Bill's extensive experience in international business operations, corporate leadership and management will help steer the company toward success in a rapidly changing industry. His proven expertise will be critical in accelerating Avnet's growth, driving an enhanced execution focus and implementing management systems to promote greater accountability."

Amelio added, "I look forward to working with the management team and all of Avnet's talented employees worldwide as we strive to achieve profitable growth for shareholders and operational excellence for customers while enhancing the company's winning culture to the benefit of employees."

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