Electrocomponents sales growth slows in fourth quarter

Sales growth slowed at Electrocomponents in the final months of the year, as progress in North America was held back by the heavy snow storms.

The day after new chief executive Lindsley Ruth took his position, group sales growth slowed to 4% in the quarter to the end of March, down from the 8% growth in the four months to January and the 5% in the six months prior.

Continuing sales declines in the UK, with a 3% fall in the quarter, meant group full year sales rose 3%.

With profit margins remaining robust, management said they still expected group headline profit before tax for the full year to match market expectations.

The margin improvement seen in the group gross margin in January was maintained during the rest of the quarter, meaning the year-on-year rate of decline in gross margin for the full year will be around 1.3%.

Helping margins was strong growth in e-commerce sales, which at 7% continued to grow faster than the group as a whole.

Sales of Electrocomponents "Famous For" product categories, comprising electronics and automation and control ranges, also outperformed with 5% growth, benefitting from high levels of new product introductions.

Strongest geographic growth in the fourth quarter was from Continental Europe, up 8%, improving from the 6% in the preceding period and so delivering a 4% rise for the year.

Despite the slowdown in the latter months, North America delivered 10% growth in the full year, with a 6% growth contribution in the fourth quarter.

Asia Pacific was up 4% in the quarter and 4% for the year.