Distributors component sales in Europe continue to decline - Embedded.com

Distributors component sales in Europe continue to decline

LONDON — Bookings and billings of electronic components sold by distributors in Europe fell in the third quarter of this year compared with the second quarter and with the same period last year according to figures from The International Distribution of Electronics Association (IDEA).

According to IDEA vice president Adam Fletcher, the European electronic component has released its distributor total available market (DTAM) is broadly following its historical trend of a strong Q1 followed by a declining Q2 and Q3. “Whilst the all important book-to-bill ratio has shown a slight improvement it remained negative in Q3 at 0.98:1 suggesting that Q4 is likely to be flat.Much now depends on the German market, which this year is proving to be more resilient than we anticipated.”

Total European distribution bookings (net sales orders entered) in Q3 2007 declined by 3.3 percent when compared to Q2 2007 and declined by 3.7 percent when compared to the same period last year.Sector specific bookings changes in Q3 2007 compared to the previous quarter were: semiconductors declined by 2.3 percent; passives declined by 2.5 percent; whilst electromechanical and other components declined by 7 percent.

Total European distribution billings (net sales invoiced less credits) in Q3 2007 declined by 4.2 percent, when compared to Q2 2007 and declined by 3.8 percent when compared to the same period last year. Sector specific billings changes in Q3 2007 compared to the previous quarter were: Semiconductor declined by 4.5 percent; passives declined by 3.5 percent; electromechanical and other components declined by 3.7 percent.

Unsettled economic conditions continue to impact the global and European electronic components markets. “The weakness of the US$ has reduced global average selling prices but has also had the effect of making Eurozone finished goods exports into North America more expensive, which has reduced demand”, said Fletcher. “European OEM customers are being understandably cautious and only making short term order commitments for components, resulting in a ‘softening’ in the market”. IDEA is a consortium of independent Trade Associations operating in the Global electronic component distribution market. The data included in 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 manufacturer-authorised distributors of electronic components operating in Denmark, France, Finland, Italy, Germany, Norway, Sweden and the U.K. Members of the various trade bodies in IDEA represent 73 percent of the distributor total available market (DTAM) in the countries in which they operate.

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