Avnet said the weak profit forecast reflects the lower revenue in the technology solutions group, lower profits margins in the Western regions in electronics marketing due to a weaker sales environment, and a greater-than-expected mix shift in electronics market, with better sales in the lower-margin Asia region more offset by weaker sales in higher-margin Western regions.
The company will now attempt to expand its market share in Europe, the Asia-Pacific region and Africa to offset the predicted losses in the U.S., the company said.