European electronic components market decline accelerates in Q4’08

International Distribution of Electronics Association (IDEA) releases consolidated Q4 ‘08 European Electronic Components – Distributor Total Available Market (DTAM) trend figures

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Q4 ’08European Electronic Components DTAM (Distributor Total Available Market) figures released by IDEA (International Distribution of Electronics Association) reveal that the rate of decline in the European electronic components DTAM accelerated in Q4’08 whilst maintaining the historic annual Billings trend of a strong Q1 followed by three declining quarters. Bookings also declined with the Book-to-Bill ratio falling in Q4’08 to 0.98:1.

According to IDEA Vice President Adam Fletcher, the figures are broadly inline with the association’s guidance and are hardly surprising given the turbulence in the global economy as a result of the financial crisis: ‘The sharp decline in Bookings in Q4’08 suggests that 2009 is unlikely to follow historical trends’ said Adam Fletcher. ‘a declining first half followed by a modest improvement in the second half now seems a more plausible scenario’ In line with most other industry observers Adam Fletcher confirms that IDEA has limited market visibility, however the association believes that Billings are likely to decline in the range (10%-to-14%) in the first half compared to the same period last year: ‘I don’t believe anybody can forecast accurately today but it seems likely that we’ll end the year in slightly negative territory’ commented Adam Fletcher. ‘My best guesstimate would be in the range (5%-to-8%)’.

Total European Distribution Bookings (Net Sales Orders Entered) in Q4’08 declined by (8%) when compared to the previous quarter and declined by (17%) when compared to the same period last year. Sector specific Bookings changes in Q4’08 compared to the same period last year were: Semiconductors declined by (17.1%); Passives by (17.4%); whilst Electro-mechs and Other Components declined by (16.5%).

Total European Distribution Billings (Net Sales Invoiced less Credits) in Q4 ’08 declined by (8.9%), when compared to the previous quarter and declined by (10.3%) when compared to the same period last year. Sector specific Billings changes in Q4 ’08 compared to the same period last year were: Semiconductors declined by (9.8%); Passives declined by (11.2%); Electro-mechs and Other Components declined by (11.3%).

For further information:

segreteria@ideaelectronics.com

www.ideaelectronics.com