LONDON The expected seasonal improvement in the U.K. electronic components bookings and billings figures failed to materialise in May 2007 according to Adam Fletcher, the chairman of the Association of Franchised Distributors of Electronic Components.
Consolidated figures from AFDEC members show a decline in total average daily bookings and billings when compared to April 2007 and a continuing decline on the same month in the previous year.
“Whilst there has been an increase in the total inventory held by UK distributors this is primarily the result of manufacturers appointing new franchised distribution partners in the U.K.,” said Fletcher. “However, AFDEC members did report a continuing improvement in overall customer business confidence, albeit a slow one, which is reflected in the positive book-to-bill ratio. AFDEC’s forecast for Q2 2007 remains 'flat' compared to the same quarter 2006.”
Total average daily bookings (net sales orders entered) in May 2007 declined by 3.5 percent when compared to April 2007 and declined by 11.5 percent when compared to the same period last year.Sector specific Bookings changes compared to April 2007 were: semiconductor declined by 4.1 percent; passives declined by 2.3 percent; electro-mechs declined by 7.1 percent; component sssemblies increased by 5.6 percent; and other products declined by 1 percent.
Total average daily billings (net sales invoiced less credits) in May 2007 declined by 4.4 percent , when compared to April 2007 and declined by 6.9 percent when compared to the same period last year.Sector specific billings changes compared to April 2007 were: semiconductor declined by 6.9 percent; passives declined by 8 percent; electro-mechs declined by 2.2 percent; component assemblies increased by 6.2 percent; and other products declined by 3.5 percent.
The overall book-to-bill ratio in May 2007 improved marginally to 1.03:1 however the overall stock turn declined slightly to 2.1 times, whilst the total inventory increased by 4 percent. Debtor days also increased slightly to 69 days when compared to April 2007.