IDEA Q2’09: European electronics Disti sales decline

Figures released by IDEA (International Distribution of Electronics Association) reveal that the rate of decline in the billings trend for the European electronic components Distributor Total Available Market (DTAM) in Q2’09 was (13%). Bookings also declined by (7%) when compared to the previous quarter however the Book-to-Bill ratio improved in Q2’09 to close to unity. According to IDEA Vice President Adam Fletcher, the figures are at the low end of the association’s previous guidance but in-line with the financial results for many sectors of the global electronic components market: ‘The decline in both Bookings and Billings in the first half of ’09 compared to the same period last year is approximately (30%) reflecting the global economic slowdown and confirming that 2009 will not follow historical trends’ said Adam Fletcher. ‘We believe that we are now entering a period where the rate of decline falls and the industry stabilises over the second half of the year. I suspect that we will now ‘bounce along the bottom’ of this recession and it is unlikely that we will see a return to stable growth until this time next year.’

IDEA members’ confirm that the European supply network visibility remains limited, however customer confidence is now improving slightly with lead times firming up but remaining stable, with good availability. ‘All organisations in the electronic components market need to remain vigilant to changes in both supply and demand, which are likely to happen quickly’ commented Adam Fletcher, ‘along with price increases caused by a combination of the escalating cost of raw materials and fluctuations in global exchange rates’.

Total European Distribution Bookings (Net Sales Orders Entered) in Q2’09 declined by (7%) when compared to the previous quarter and declined by (31%) compared to the same period last year. Sector specific Bookings changes in Q2 ’09 compared to the same period last year were: Semiconductors declined by (32%); Passives by (33%); whilst Electro-mechs and Other Components declined by (28%).

Billings

Total European Distribution Billings (Net Sales Invoiced less Credits) in Q2’09 declined by (13%), when compared to the previous quarter and declined by (30%) compared to the same period last year. Sector specific Billings changes in Q2’09 compared to the same period last year were: Semiconductors declined by (30%); Passives declined by (31%); Electro-mechs and Other Components declined by (27%).