Arrow Electronics Reports First Quarter Earnings in Line with Expectations

-- Achieves Targeted Level of Expense Reductions --

-- Cash from Operations Exceeds $230 Million --
MELVILLE, N.Y.--(Business Wire)--
Arrow Electronics, Inc. (NYSE:ARW) today reported first quarter 2009 net income
of $26.7 million ($.22 per share on both a basic and diluted basis) on sales of
$3.42 billion, compared with net income of $85.9 million ($.70 and $.69 per
share on a basic and diluted basis, respectively) on sales of $4.03 billion in
the first quarter of 2008. Sales decreased 15 percent year over year. Pro forma
to include the impact of the acquisition of LOGIX S.A. ("LOGIX"), sales
decreased 18 percent year over year.

The company's results for the first quarters of 2009 and 2008 include a number
of items outlined below that impact their comparability. A complete
reconciliation of these items is provided under the heading "Certain Non-GAAP
Financial Information." Excluding those items, on a non-GAAP basis, net income
for the quarter ended April 4, 2009, would have been $42.8 million ($.36 per
share on both a basic and diluted basis) and net income for the quarter ended
March 31, 2008, would have been $97.9 million ($.80 and $.79 per share on a
basic and diluted basis, respectively).

"We executed well in the first quarter, despite the persistent backdrop of
global economic uncertainty and turbulence, with sales and earnings per share in
line with our expectations. Cash flow generation was again a bright spot, as we
generated more than $230 million in cash flow from operations, marking our 10th
consecutive quarter of positive cash flow generation," said William E. Mitchell,
chairman and chief executive officer. "We achieved our targeted level of cost
reductions, and reduced expenses at a faster rate than the decline in sales. Our
disciplined financial strategy and solid market position are competitive
advantages, and we will continue to manage the company in a prudent, fiscally
disciplined manner to increase profitability, maintain positive cash flow, and
strengthen our already strong balance sheet. However, we cannot ignore the fact
that economies around the world are still struggling with recessionary
conditions, and this will continue to have an impact on our business. Our
visibility remains extremely limited, and we are not prepared to call a bottom
yet."

Global enterprise computing solutions ("ECS") sales of $1.07 billion decreased 3
percent year over year. Pro forma to include the impact of the acquisition of
LOGIX S.A. ("LOGIX"), sales decreased 13 percent year over year. "Our ECS
segment performed well despite the macro environment. We continue to see the
integration of LOGIX in Europe going well, as sales in this region came in ahead
of expectations due to strong performance in the UK and Southern Europe. While
our visibility on revenue and demand remains challenging, we would expect second
quarter sales growth to be at the low end of our normal seasonal range," added
Michael J. Long, president and chief operating officer.

Global components sales of $2.35 billion decreased 20 percent year over year,
primarily due to weakness in Europe and North America. "Global components sales
were modestly ahead of the midpoint of our expectations. In Asia Pacific, we
achieved above-seasonal sales growth, driven by strong performance in our
low-end handset business in Taiwan, as well as strength in China. Our book to
bill in global components was 1.05 on a global basis, with North America and
Asia Pac strengthening. Looking ahead to the second quarter, we still remain
cautious, with the macro economy in Europe a significant concern." Mr. Long
said.

The company's results for the first quarter of 2009 and 2008 include the items
outlined below that impact their comparability:

* During the first quarter of 2009, the company recorded a restructuring and
integration charge of $24.0 million ($16.1 million net of related taxes or $.13
per share on both a basic and diluted basis) primarily related to initiatives
taken by the company to improve operating efficiencies.
* During the first quarter of 2008, the company recorded a restructuring and
integration charge of $6.5 million ($4.2 million net of related taxes or $.03
per share on both a basic and diluted basis), primarily related to initiatives
taken by the company to improve operating efficiencies.
* As previously disclosed, during the first quarter of 2008, the company
recorded a charge related to a preference claim from 2001 of $12.9 million ($7.8
million net of related taxes or $.06 per share on both a basic and diluted
basis).

GUIDANCE

"Looking ahead, we believe that total second quarter sales will be between $3.15
and $3.75 billion, with global component sales between $2.0 and $2.4 billion and
global enterprise computing solutions sales between $1.15 and $1.35 billion.
Earnings per share, on a diluted basis, excluding any charges, are expected to
be in the range of $.26 to $.38. Our guidance assumes that the average Euro to
USD exchange rate for the second quarter is 1.32 to 1, compared with an average
exchange rate of 1.56 to 1 in the second quarter of 2008," said Paul J. Reilly,
senior vice president and chief financial officer.

Arrow Electronics (www.arrow.com) is a global provider of products, services and
solutions to industrial and commercial users of electronic components and
enterprise computing solutions. Headquartered in Melville, N.Y., Arrow serves as
a supply channel partner for approximately 800 suppliers and 130,000 original
equipment manufacturers, contract manufacturers and commercial customers through
a global network of more than 340 locations in 53 countries and territories.

Certain Non-GAAP Financial Information

In addition to disclosing results that are determined in accordance with
Generally Accepted Accounting Principles ("GAAP"), the company provides certain
non-GAAP financial information relating to operating income, net income and net
income per basic and diluted share, each as adjusted for certain charges,
credits and losses that the company believes impact the comparability of its
results of operations. These charges, credits and losses arise out of the
company`s efficiency enhancement initiatives and certain legal matters. A
reconciliation of the company`s non-GAAP financial information to GAAP is set
forth in the table below.

The company believes that such non-GAAP financial information is useful to
investors to assist in assessing and understanding the company`s operating
performance and underlying trends in the company`s business because management
considers the charges, credits and losses referred to above to be outside the
company`s core operating results. This non-GAAP financial information is among
the primary indicators management uses as a basis for evaluating the company`s
financial and operating performance. In addition, the company`s Board of
Directors may use this non-GAAP financial information in evaluating management
performance and setting management compensation.

The presentation of this additional non-GAAP financial information is not meant
to be considered in isolation or as a substitute for, or alternative to,
operating income, net income and net income per basic and diluted share
determined in accordance with GAAP. Analysis of results and outlook on a
non-GAAP basis should be used as a complement to, and in conjunction with, data
presented in accordance with GAAP.

ARROW ELECTRONICS, INC.
EARNINGS RECONCILIATION
(In thousands except per share data)

Quarter Ended
April 4, March 31,
2009 2008
(unaudited)

Operating income, as reported $ 61,237 $ 144,143
Restructuring and integration charge 24,018 6,478
Preference claim from 2001 - 12,941
Operating income, as adjusted $ 85,255 $ 163,562

Net income attributable to shareholders, as reported $ 26,741 $ 85,871
Restructuring and integration charge 16,069 4,159
Preference claim from 2001 - 7,822
Net income attributable to shareholders, as adjusted $ 42,810 $ 97,852

Net income per basic share, as reported $ .22 $ .70
Restructuring and integration charge .13 .03
Preference claim from 2001 - .06
Net income per basic share, as adjusted $ .36 $ .80

Net income per diluted share, as reported $ .22 $ .69
Restructuring and integration charge .13 .03
Preference claim from 2001 - .06
Net income per diluted share, as adjusted $ .36 $ .79

The sum of the components for basic and
diluted net income per share, as
adjusted, may not agree to totals, as
presented, due to rounding.

Information Relating to Forward-Looking Statements

This press release includes forward-looking statements that are subject to
numerous assumptions, risks, and uncertainties, which could cause actual results
or facts to differ materially from such statements for a variety of reasons,
including, but not limited to: industry conditions, the company's planned
implementation of its new enterprise resource planning system, changes in
product supply, pricing and customer demand, competition, other vagaries in the
global components and global ECS markets, changes in relationships with key
suppliers, increased profit margin pressure, the effects of additional actions
taken to become more efficient or lower costs, and the company`s ability to
generate additional cash flow. Forward-looking statements are those statements,
which are not statements of historical fact. These forward-looking statements
can be identified by forward-looking words such as "expects," "anticipates,"
"intends," "plans," "may," "will," "believes," "seeks," "estimates," and similar
expressions. Shareholders and other readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date on
which they are made. The company undertakes no obligation to update publicly or
revise any of the forward-looking statements.

ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share data)

Quarter Ended
April 4, March 31,
2009 2008
(unaudited)

Sales $ 3,417,428 $ 4,028,491
Costs and expenses:
Cost of products sold 2,986,432 3,442,200
Selling, general and administrative expenses 329,114 405,512
Depreciation and amortization 16,627 17,217
Restructuring and integration charge 24,018 6,478
Preference claim from 2001 - 12,941
3,356,191 3,884,348
Operating income 61,237 144,143
Equity in earnings of affiliated companies 323 2,354
Interest and other financing expense, net 23,035 25,072
Income before income taxes 38,525 121,425
Provision for income taxes 11,789 35,520
Consolidated net income 26,736 85,905
Noncontrolling interests (5 ) 34
Net income attributable to shareholders $ 26,741 $ 85,871
Net income per share:
Basic $ .22 $ .70
Diluted $ .22 $ .69
Average number of shares outstanding:
Basic 119,570 122,777
Diluted 120,133 123,789

ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands except par value)

April 4, December 31,
2009 2008
(unaudited)

ASSETS
Current assets:
Cash and cash equivalents $ 618,505 $ 451,272
Accounts receivable, net 2,444,842 3,087,290
Inventories 1,446,097 1,626,559
Prepaid expenses and other assets 191,338 180,647
Total current assets 4,700,782 5,345,768
Property, plant and equipment, at cost:
Land 24,829 25,127
Buildings and improvements 144,477 147,138
Machinery and equipment 724,617 698,156
893,923 870,421
Less: Accumulated depreciation and amortization (465,427 ) (459,881 )
Property, plant and equipment, net 428,496 410,540
Investments in affiliated companies 47,633 46,788
Cost in excess of net assets of companies acquired 902,002 905,848
Other assets 388,318 409,341
Total assets $ 6,467,231 $ 7,118,285
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 1,983,558 $ 2,459,922
Accrued expenses 328,368 455,547
Short-term borrowings, including current portion of 39,410 52,893
long-term debt
Total current liabilities 2,351,336 2,968,362

Long-term debt 1,208,101 1,223,985
Other liabilities 240,873 248,888
Equity:
Shareholders' equity:
Common stock, par value $1:
Authorized - 160,000 shares in 2009 and 2008
Issued - 125,285 and 125,048 shares in 2009 and 2008, 125,285 125,048

respectively
Capital in excess of par value 1,033,690 1,035,302
Treasury stock (5,701 and 5,740 shares in 2009 and (187,079 ) (190,273 )

2008, respectively), at cost
Retained earnings 1,597,746 1,571,005
Foreign currency translation adjustment 132,386 172,528
Other (35,456 ) (36,912 )
Total shareholders' equity 2,666,572 2,676,698
Noncontrolling interests 349 352
Total equity 2,666,921 2,677,050
Total liabilities and equity $ 6,467,231 $ 7,118,285

ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

Quarter Ended
April 4, March 31,
2009 2008
(unaudited)
Cash flows from operating activities:
Consolidated net income $ 26,736 $ 85,905
Adjustments to reconcile consolidated net income to net cash provided by operations:
Depreciation and amortization 16,627 17,217
Amortization of stock-based compensation 5,357 5,499
Amortization of deferred financing costs and discount on notes 547 572
Equity in earnings of affiliated companies (323 ) (2,354 )
Deferred income taxes 10,508 (4,379 )
Restructuring and integration charge 16,069 4,159
Preference claim from 2001 - 7,822
Excess tax benefits from stock-based compensation arrangements 2,158 (266 )
Change in assets and liabilities, net of effects of acquired businesses:
Accounts receivable 603,992 287,479
Inventories 161,195 (71,348 )
Prepaid expenses and other assets (8,291 ) (3,332 )
Accounts payable (448,384 ) (296,846 )
Accrued expenses (145,855 ) 28,545
Other (9,685 ) (17,969 )
Net cash provided by operating activities 230,651 40,704
Cash flows from investing activities:
Acquisition of property, plant and equipment (36,812 ) (32,345 )
Cash consideration paid for acquired businesses - (73,398 )
Other (89 ) (124 )
Net cash used for investing activities (36,901 ) (105,867 )
Cash flows from financing activities:
Change in short-term borrowings (11,178 ) (766 )
Repayment of revolving credit facility borrowings (29,400 ) (409,428 )
Proceeds from revolving credit facility borrowings 28,256 409,784
Proceeds from exercise of stock options 554 1,347
Excess tax benefits from stock-based compensation arrangements (2,158 ) 266
Repurchases of common stock (2,073 ) (4,421 )
Net cash used for financing activities (15,999 ) (3,218 )
Effect of exchange rate changes on cash (10,518 ) 12,534
Net increase (decrease) in cash and cash equivalents 167,233 (55,847 )
Cash and cash equivalents at beginning of period 451,272 447,731
Cash and cash equivalents at end of period $ 618,505 $ 391,884

ARROW ELECTRONICS, INC.
SEGMENT INFORMATION
(In thousands)

Quarter Ended
April 4, March 31,
2009 2008
(unaudited)

Sales:
Global components $ 2,345,012 $ 2,922,243
Global ECS 1,072,416 1,106,248
Consolidated $ 3,417,428 $ 4,028,491

Operating income (loss):
Global components $ 76,098 $ 160,578
Global ECS 32,026 30,673
Corporate (a) (46,887 ) (47,108 )
Consolidated $ 61,237 $ 144,143

(a) Includes a restructuring
and integration charges of
$24.0 million and $6.5
million for the first
quarters of 2009 and 2008,
respectively, and a charge
of $12.9 related to the
preference claim from 2001
for the first quarter of
2008.

Arrow Electronics, Inc.
Michael Taunton, 631-847-5680
Vice President & Treasurer
or
Paul J. Reilly, 631-847-1872
Senior Vice President & Chief Financial Officer
or
Media:
John Hourigan, 303-824-4586
Director, External Communications

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