LONDON The latest electronic components distributor total available market (DTAM) figures released by the International Distribution of Electronics Association (IDEA) continued to demonstrate a return to sequential European bookings and billings growth.
According to Adam Fletcher, vice president of IDEA, the consolidated fourth quarter 2009 figures buck the declining booking and billings trend that Europe usually suffers in the final quarter of the year but are in line with the financial results reported by many sectors of the global electronic components market.
“The electronic components market in Europe has suffered five quarters of declining revenue, followed by two quarters of growth. Comparing the annual market totals, billings in 2009 declined by 21 per cent compared to 2008 and by 27 per cent compared to 2007, so we have significant catching up to do in Europe to recover our position,” said Fletcher. “The electronic components markets in Europe have historically grown in the first and second quarters each year and we have to hope that the trend will continue in 2010.”
The supply network visibility in the European electronic components market remains limited despite anecdotal evidence of improving customer confidence, driven primarily by the growth in the bookings number.
Fletcher suspects that demand in Asia is likely to slow in the first quarter of 2010, providing some short term relief on electronic component lead times in the rest of the world.”Given the current limited visibility in the supply network we should expect lead time volatility in the market as manufacturers re-commission 'mothballed' capacity or add new capacity,” said Fletcher
Total European distribution bookings (net sales orders entered) in the fourth quarter 2009 increased by 16 per cent when compared to the previous quarter and by 10 per cent when compared to the same period the previous year. Sector specific bookings changes in the fourth quarter 2009 compared to the same period 2008 saw semiconductors increase by 20 per cent; passives decline by 8 per cent; whilst electro-mechs and other components decline by 3 per cent.
Total European distribution billings (net sales invoiced less credits) in the fourth quarter 2009 improved by 4 per cent, when compared to the previous quarter but declined by 11 per cent compared to the same period in the previous year. Sector specific billings changes in the fourth quarter 2009 compared to the same period 2008 saw semiconductors decline by 10 per cent; passives decline by 14 per cent; electro-mechs and other components declined by 11 per cent.
The book-to-bill ratio declined slightly in the fourth quarter 2009 but remained positive at 1.04:1.
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