European component sales through distribution continue decline - Embedded.com

European component sales through distribution continue decline

LONDON — Billings for electronic components sold in Europe through the distribution channel in the second quarter of 2009 was down 13 percent while bookings were down 7 percent compared to the previous quarter.

The figures released by the International Distribution of Electronics Association (IDEA) showed one bright spot in that the book-to-bill ratio improved in the quarter to close to unity.

IDEA members’ confirm that the European supply network visibility remains limited, however customer confidence is now improving slightly with lead times firming up but remaining stable, with good availability.

The figures are at the low end of the association’s previous guidance but in-line with the financial results for many sectors of the global electronic components market according to Adam Fletcher, vice president of IDEA.

“The decline in both bookings and billings in the first half of 2009 compared to the same period last year is approximately -30 percent reflecting the global economic slowdown and confirming that 2009 will not follow historical trends,” said Fletcher. “We believe that we are now entering a period where the rate of decline falls and the industry stabilises over the second half of the year. I suspect that we will now ‘bounce along the bottom’ of this recession and it is unlikely that we will see a return to stable growth until this time next year.”

Total European distribution bookings (net sales orders entered) in the second quarter of 2009 declined by 7 percent when compared to the previous quarter and declined by 31 percent compared to the same period last year.

Sector specific bookings changes in the quarter compared to the same period last year were: semiconductors declined by 32 percent; passives down by 33 percent; whilst electro-mechs and other components declined by 28 percent.

Total European distribution billings (net sales invoiced less credits) in the second quarter declined by 13 percent, when compared to the previous quarter and declined by 30 percent compared to the same period last year.

Sector specific billings changes in the second quarter of 2009 compared to the same period last year were: semiconductors declined by 30 percent; passives declined by 31 percent; electro-mechs and other components declined by 27 percent.

The International Distribution of Electronics Association (IDEA) is a consortium of independent trade associations operating in the global electronic component distribution market. The data included in the European distributor total available market (DTAM) report was complied from statistics gathered quarterly from over 100 authorised distributors of electronic components operating in Denmark, France, Finland, Italy, Germany, Norway and the U.K.

Related links and articles:

Distributors’ association sees end to declines

European electronic components market decline accelerates

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