Avnet Names William Amelio Interim CEO, Cuts Outlook For Q4

(RTTNews) - Avnet, Inc. (AVT) Monday announced the appointment of William Amelio as interim chief executive officer, replacing Rick Hamada, effective immediately.

Amelio has been working as a director of Avnet and brings more than 35 years of management and industry experience. Amelio has served as the president, chief executive officer and a director of CHC Group Ltd. and regional senior vice president and president of Asia-Pacific and Japan for Dell Inc.

Further, the company updated its outlook for the fourth fiscal quarter ended July 2, 2016. Adjusted earnings per share is reduced to the range of $0.80 to $0.86, while the previous guidance was $0.95 to $1.05. On average, 10 analysts polled by Thomson Reuters expected the company to earn $1 per share. Analysts estimates usually exclude special items.

Sales are currently expected to be in the range of $6.15 billion to $6.25 billion, which is near the midpoint of the company's previous sales guidance of $6.25 billion. Wall Street expects sales of $6.27 billion for the quarter.

The company noted that the shortfall was impacted primarily by an ERP implementation in the Americas region of the Electronics Marketing operating group. Sales for the region are expected to be approximately $100 million less than the prior outlook and the region also incurred higher costs in order to maintain customer deliveries.

Avnet said the impact to sales was minimal by the end of the June quarter, some of the higher costs incurred are expected to continue and will likely impact the first fiscal quarter ended October 1, 2016.