AFDEC sees improving component sales
LONDON The AFDEC (Association of Franchised Distributors of Electronic Components) statistics for February 2006 show total average daily component bookings (net sales orders entered) in the U.K. increased by 5.6% when compared to the previous month and increased by 17.4% when compared to the same period last year.
Compared to January 2006 semiconductor bookings were up by 2.3%; passives up by 3.7%; electromechanicals up by 5.1%; component assemblies” up by 24.6% and other products by 6.6%.
The total average daily billings (net sales invoiced less credits) in February 2006 increased by 5.5%, when compared to January '06 and increased by 6.4% when compared to the same period last year. Billing changes by sector compared to January showed semiconductor up by 9.2%; passives up by 0.7%; electromechanicals up by 3.3%; component assemblies up by 4.7% and other products up by 1.1%.
The overall book-to-bill ratio in February remained flat but positive at 1.10:1. Overall stock turn ratios declined slightly to 2.2 times, with overall inventory levels increasing by 2%. Debtor days increased slightly to a total of 68.1 days.
According to AFDEC Chairman Adam Fletcher, AFDEC members are consistent in reporting a positive book-to-bill ratio and are expecting the improvement in both bookings and billings to continue. “This is great news, however two months figures can't be viewed as much of a trend. The book-to-bill ratio needs to increase steadily before we can expect to see significant growth in sales revenue,” said Fletcher