Q1’09 European Electronics Distribution Sales Bucking Historic Trend

Figures released by IDEA (International Distribution of Electronics Association) reveal that the rate of decline in the European electronic components DTAM flattened in Q1 ’09 but still show every indication of bucking 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 Q1’09 to 0.89:1.

According to IDEA Vice President Adam Fletcher, the figures are below the association’s previous guidance but inline with the financial results for all sectors of the global electronic components market: ‘The decline in Bookings in Q1 compared to the same period in ’08 reflects continuing low business confidence and provides a strong indication that 2009 will not follow historical trends’ said Adam Fletcher. ‘A declining first half followed by a period of stabilisation in the second half of the year now seems a more plausible scenario’. In line with most other industry observers, Adam Fletcher reports that IDEA members’ supply network visibility has improved slightly, with the association forecasting that Q2 Billings are likely to decline in the range 12%-to-18% in Q2 ’09 compared to the same period last year: ‘I suspect we are now approaching the bottom of the economic cycle’ commented Adam Fletcher. ‘As anticipated lead-times in the supply network for some components are increasing slightly, not because of improving demand but because so much capacity has been taken out’.

Total European Distribution Bookings (Net Sales Orders Entered) in Q1’09 declined by 3% when compared to the previous quarter and declined by 30% compared to the same period last year. Sector specific Bookings changes in Q1’09 compared to the same period last year were: Semiconductors declined by 33.5%; Passives by 24.8%; whilst Electro-mechs and Other Components declined by 23.5%.

Total European Distribution Billings (Net Sales Invoiced less Credits) in Q1 ’09 declined by 3%, when compared to the previous quarter and declined by 21.4% compared to the same period last year. Sector specific Billings changes in Q1 ’09 compared to the same period last year were: Semiconductors declined by 24.8%; Passives declined by 16.3%; Electro-mechs and Other Components declined by 13.9%.

The International Distribution of Electronics Association (IDEA) is a consortium of independent Trade Associations operating in the global electronic component distribution market. The data included in the European DTAM report was complied from statistics provided by AFDEC (UK/Nordic), Assodel (Italy), FBDi (Germany) and SPDEI (France). Statistics are gathered quarterly from over 100 authorised distributors of electronic components operating in Denmark, France, Finland, Italy, Germany, Norway, Sweden and the UK. Members of the various trade bodies in IDEA represent 73% of the Distributor Total Available Market (DTAM) in the countries in which they operate and the Association is therefore confident that the consolidated figures included in its report provide a reliable perspective of trends in the European Electronic Component market.

Additional information on IDEA may be found at www.ideaelectronics.com