Arrow Electronics Announces Winding Down of IT Asset Disposition Business

SEATTLE (Scrap Monster): Colorado-based Arrow Electronics Inc. announced plans to exit from information technology asset disposition (ITAD) business. The announcement comes as part of its decisive decision to preserve profits. It expects to completely wind down the business segment by the end of 2019.

Michael J. Long, chairman, president and chief executive officer noted that the company has already begun the process of making its employees aware of the decision. The decision has been taken after careful analysis of the market, whose business dynamics have changed a lot since the company’s entry into the market. The ITAD businesses in Sweden, Belgium and the UK will also be closed. Arrow Electronics will soon commence the consultative process with representatives of employees, Long added.

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The winding down of the personal computer and mobility asset disposition business will incur charges of approximately $115 million, mainly in the second quarter of fiscal 2019. Consequently, the company expects lower than anticipated results during the quarter. The sales are expected total around $7.3 billion, whereas the earnings loss per share on diluted basis are expected to range between $6.23 and $6.35.

The actions aimed at reducing operating expenses are expected to contribute nearly $130 million in annualized cost savings to the company.

Arrow Electronics will provide full Q2 results and guidance for Q3 on 1^st August, 2019.