CORRECTED - CORRECTED-UPDATE 2-Arrow Electronics Q2 adj profit beats Street

(Corrects paragraph 9 to show figures are for components business, not total sales)

* Q2 adj EPS $0.31 vs est $0.29

* Q2 rev $3.39 bln vs est $3.42 bln (Adds details from conference call, analysts comments)

By Mansi Dutta

BANGALORE, July 29 (Reuters) - Electronic-parts and computer-hardware distributor Arrow Electronics (ARW.N) posted an adjusted second-quarter profit that beat estimates, helped by lower operating expenses and higher orders in June.

While the quarter got off to a slow start in April and May, June closed relatively strong, the company said in a conference call with analysts.

"Both bookings and billings showed an increase for the quarter and our backlog is up for the first time in several quarters," the company said.

Despite some positive indicators, Arrow "was not ready to call a bottom."

"Gross margins continue to be negatively impacted by a change in our geographic mix of businesses as Asia becomes a larger portion of total component sales and competitive pressures also influence our performance," the company said.

The company's second-quarter profit fell to $21.1 million, or 18 cents a share, from $96.2 million, or 79 cents a share, a year earlier.

Excluding items, the company posted a profit of 31 cents per share.

Revenue fell 22 percent to $3.39 billion.

While sales in the components business in Europe and North America fell 41 percent and 27 percent, respectively, Asia-Pacific sales rose 10 percent.

Analysts were expecting a profit of 29 cents a share, excluding exceptional items, on revenue of $3.42 billion, according to Reuters Estimates.

Selling, general and administrative expenses fell about 25 percent to $315.0 million.

"We have an additional $100 million in annual cost reductions that are expected to be implemented in the second half of 2009, primarily in our European operations," Chief Financial Officer Paul Reilly said in a statement.

Additional restructuring actions suggest that the company is further from a bottom in a high traditionally margin segment, Raymond James analyst Brian Alexander said.

While this would help improve earnings in 2010 to an extent, cost saving will take the story only so far, Longbow Research analyst Shawn Harrison said.

It does not seem like they're seeing any significant signs in terms of generating revenue in the back of 2009 in either of their businesses, he said.

For the third quarter, the company expects earnings of 25 cents to 37 cents per share, excluding charges, on revenue of $3.1 billion to $3.7 billion.

Analysts are projecting earnings of 32 cents, excluding items, on revenue of $3.37 billion.

Shares of the company, whose rivals include Avnet (AVT.N), were trading up 0.5 percent at $24.64 Wednesday on the New York Stock Exchange. For alerts, please double click [ID:nWNBB4863] (Editing by Aradhana Aravindan, Jarshad Kakkrakandy)