LONDON The Association of Franchised Distributors of Electronic Components (AFDEC) has released its statistics for October 2006. The figures show that overall average daily bookings and billings improved compared to the same period last year but were significantly lower than in Sept 2006.
The overall book-to-bill ratio improved to just above unity which confirms AFDEC’s forecast that the fourth quarter of 2006 is likely to be a 'flat'.
According to chairman Adam Fletcher, AFDEC members report that their overall inventory level has increased by almost 4 percent in October compared to the previous month and is now equivalent to a little over three months billings at the current rate. “AFDEC members will need to balance their inventory this quarter in line with their customers’ demand forecasts for the first quarter of 2007,” said Fletcher.
Total average daily bookings (net sales orders entered) in October declined by 5.8 percent compared to September 2006 but increased by 17 percent when compared to the same month last year.
Compared to September 2006 semiconductor bookings declined 9.1 percent; passives increased 2.4 percent; electro-mechs declined 5.8 percent; component assemblies increased 1.1 percent; and other products declined 14.6 percent.
Total average daily billings (net sales invoiced less credits) in October declined by 11.8 percent, when compared to September 2006 but increased by 9.4 percent when compared to the same month last year.
Compared to September 2006 semiconductor billings declined 18.7 percent; passives declined 10.2 percent; electro-mechs declined 1.9 percent, component assemblies increased 1.4 percent; and other products declined 14.6 percent.
The overall book-to-bill ratio in October 2006 improved slightly to 1.02:1 with the overall stock turn ratio declining slightly to 2.2 times, however the overall Inventory total increased by 3.9 percent. Debtor days remained flat at 66 days when compared to September 2006.