LONDON Franchised distribution’s total average daily bookings and billings in the U.K. in April 2007 were up on the previous month but continued to decline when compared to the previous year according to statistics from the Association of Franchised Distributors of Electronic Components (AFDEC).
According to AFDEC chairman Adam Fletcher, the confidence of U.K. customers appeared to drop in mid-March continuing into April but is now recovering, albeit slowly: “This 'confidence wobble' has not been reflected in other European electronic component markets and its cause in the U.K. is not easily identifiable.”
“Distributors appear to be managing their inventory carefully with few reported supply side issues but that said, the overall book-to-bill ratio now needs to show a significant improvement if we’re to see any significant growth in the second half of 2007.”
Total average daily bookings (net sales orders entered) in April 2007 increased by 2 percent when compared to March 2007 but declined by 13.4 percent when compared to the same period last year. Sector specific bookings changes compared to March 2007 were: semiconductor declined by 0.8 percent, passives increased by 0.4percent, electro-mechanicals increased by 5.8 percent, component assemblies increased by 16.7 percent, and other products declined by 5.5 percent.
Total average daily billings (net sales invoiced less credits) in April 2007 increased by 0.4 percent, when compared to March 2007 but declined by 8.5 percent when compared to the same period last year. Sector specific billings changes compared to March 2007 were: semiconductor increased by 2.2 percent, passives increased by 7.1 percent, electro-mechanicals increased by 0.6 percent, component assemblies declined by 9.6 percent and other products declined by 6 percent.
The overall book-to-bill ratio in April 2007 improved marginally to 1.02:1 however the overall stock turn declined slightly to 2.2 times, whilst the total inventory declined by almost 1 percent. Debtor days were 67.