Premier Farnell optimistic despite tumbling profits
ELECTRICAL components distributor Premier Farnell posted a 10 per cent drop in second-quarter profit yesterday although it said it saw signs of improvement in August sales.
Premier Farnell distributes items from batteries to microchips to companies such as Philips and Microsoft and also counts Nokia and Eriksson among its customers.
Profit before tax fell 10 per cent to £16.2 m for the three months ended 2 August. Sales dropped 17 per cent to £183.7m, accelerating a 15 per cent decline in the first quarter.
The company said it was well positioned for a rebound and noted that revenue declines in Europe and Asia Pacific had abated.
Electrocomponents, Premier Farnell’s main rival, said its major markets were stabilising when it reported a fall in first-quarter sales of 17 per cent in July.
Shares in the group closed the day down 9.8 per cent at 147p.