Fitch gives information technology distributors ’stable’ outlook, sees rising revenue in 2010
By APFriday, April 23, 2010
Fitch gives tech distributors ’stable’ outlook
NEW YORK — Fitch Ratings on Friday issued a “Stable” outlook for information technology distributors, saying it expects the group to see some growth in revenue in 2010 as businesses start spending to upgrade hardware and software again.
Fitch’s comments apply to distributors Anixter International Inc., Arrow Electronics Inc., Avnet Inc., Ingram Micro Inc. and Tech Data Corp.
Corporations had stopped replacing aging technology during the economic downturn. Fitch said the improving economy and growth in emerging markets should boost revenue for these companies.
Fitch also noted that the companies have reduced short-term debt and limited acquisitions and stock buybacks. However, the ratings agency said it expects some deterioration in the companies’ credit profiles as acquisitions start to take place again.
Shares of Tech Data gained 32 cents to $43.71 in afternoon trading. Ingram Micro’s stock rose 25 cents to $18.62, Avnet shares improved 45 cents to $32.70, Arrow Electronics’ stock rose 24 cents to $31.47, and Anixter’s shares rose $1.29 to $52.37.
|
April 24, 2010: 10:03 am
I agree that since the economy has been turning around, and companies are beginning to show higher revenues and profits than in the past couple years, newer technology will be required in order to conduct consumer and b2b business. For that reason, I too believe that newer hardware will be purchased within the next year or so. |
WMSA