Avnet, Inc.
(
AVT
) recently came out with its succession plan for the Chairman of
the Board after current Chairman Roy Vallee announced his decision
to retire and not to run for re-election.
Vallee served as the Chairman of Avnet for 14 years and another
13 years as the Chief Executive Officer.
In response, Avnet plans to select current board member William
Schumann III to serve as the non-executive chairman, subject to his
re-election as an Avnet board member by shareholders at its annual
meeting in November.
Prior to joining Avnet's Board in February 2010, Schumann served
as the Executive Vice President of FMC Technologies, Inc. Schumann
served in a variety of financial and operational leadership
positions in FMC Corporation since joining in 1981. He was
the Senior Vice President and Chief Financial Officer prior to the
creation of FMC Technologies in 2001. Schumann served as the Chief
Financial Officer at FMC Technologies from 2001 until he retired
from his position in November 2011.
It remains to be seen how a change in management helps Avnet to
march forward in an uncertain macroeconomic environment.
Earlier, Avnet reported sales of $6.31 billion in the fourth
quarter of fiscal 2012, down 8.8% year over year. Although revenues
in the quarter were within management's guidance range of $6.30
billion to $6.90 billion, it failed to meet Zacks Consensus
Estimate of $6.54 billion.
Avnet ported an adjusted net income of $145.3 million or 99
cents per share in the fourth quarter of fiscal 2012, down from a
net income of $189.4 million or $1.22 per share in the year-ago
quarter and an adjusted net income of $151.6 million or $1.03 per
share in the previous quarter.
Reported earnings lagged the Zacks Consensus Estimate of $1.08
per share as well as management's guidance range of $1.05 - $1.13
per share. Earnings estimates have moved downward after the company
reported its fourth quarter results.
Hence, we continue to maintain a Neutral recommendation on
Avnet, Inc. However, we currently have a Zacks #4 Rank on the
stock, which translates into a short-term rating of Sell.
AVNET (AVT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment
Research