UPDATE: Electrocomponents First-Quarter Revenue Up 24%

15th Jul 2010 09:39

(Adds executive and analyst comment, detail.) By Jason Douglas Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Electronics distributor Electrocomponents PLC (ECM.LN) Thursday said revenue grew 24% on year during the first quarter of its fiscal year, driven by rising sales in North America and online. The Oxford, England-based company--which distributes about 500,000 products to engineers worldwide including cables, batteries, semiconductors and hydraulic gear--said it is confident of making further progress during the remainder of the year despite lingering worries about global economic recovery, which affects demand for electronic components. Group Chief Executive Ian Mason told reporters Electrocomponents is winning business at the expense of smaller rivals that struggled during the recession. It is also investing in new products and services to boost sales, he said. Electrocomponents added 10,000 new products to its catalogs during the quarter and launched a new online service for electronics designers called DesignSpark. Electrocomponents said first-quarter sales in Europe were 22% higher than a year earlier; North American sales grew 43% and online Asia-Pacific sales increased 30%. Growth in the U.K. was weaker. Sales there rose 12% on year. Online sales advanced 43%. North American online sales doubled. Analysts at brokerage KBC Peel Hunt maintained a "hold" rating. Although it is possible earnings estimates will be upgraded in September, Electrocomponents earnings in fiscal 2011 will face tougher comparisons with this fiscal year, KBC said. At 0830 GMT, shares in Electrocomponents were down 5.1 pence, or 2.2%, at 231.6 pence, underperforming a 0.1% lower FTSE 250 index. The stock has gained 43% since the beginning of the year. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [email protected] (END) Dow Jones Newswires July 15, 2010 04:39 ET (08:39 GMT)