Peter Clarke EE Times Europe (09/04/2009 5:07 AM EST)

LONDON — Sales and profits were down year-on-year in the second quarter ended Aug. 2 at component distributor Premier Farnell plc (Leeds, England) as the company made a net profit of £11.3 million (about $18.5 million) on revenue of £183.7 million (about $300 million).

Revenue was down 6.2 percent from £195.8 million (about $320 million) in the equivalent quarter a year before and the profit was similarly squeezed from £12.6 million (about $20.6 million). However, due to exchange rate and actuarial losses on pension provisions not recorded on the balance sheet Premier Farnell made a comprehensive loss for the period of £8.4 million (about $13.7 million), the company said.

The losses are mainly related to U.S. and U.K. pension deficits.

The company praised its own performance online and Eastern Europe, India and China. The company said internet sales had grown 5 percent year-on-year, with Farnell Europe now achieving 55 percent of total sales via eCommerce channels. Sales in Eastern Europe grew 39 percent in the second quarter, with sales in India and Greater China up 99 percent and 5 percent, respectively.

"The rate of our revenue decline has abated in Europe and Asia Pacific and we have continued to outperform the markets and take market share in these regions," Harriet Green, chief executive officer, in a statement. "Revenue performance in our North American business continues to reflect the decline seen in the broader U.S. MRO market. However, absolute sales per day for this business improved throughout the second quarter, a trend which has continued into August as we accelerate our EDE drive and our U.S. transformation continues at pace."

Green continued: "Group sales growth in August has shown an improvement on the performance reported in the first and second quarters of this year. With the clear validation of our strategy, another quarter of gross margin stability and our commitment to investing in our strategic priorities, the board remains confident, that as a focused and agile organization, the group is well positioned for the opportunities that we face."

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