Wyle’s Net Income Down by 24% Despite Rising Sales

Wyle Electronics, a major semiconductor and computer parts distributor, posted a 24% decline in net income for the second quarter while sales rose 15%.

The company, which earlier this month reached an agreement to be acquired by German industrial giant Veba AG, said net income totaled $8.4 million, or 68 cents a share, down from $11.1 million, or 86 cents a share, for last year’s second quarter. Sales increased to $352.4 million from $306.9 million.

The company attributed the earnings decline to additional hiring and recent investments in more inventory. Wyle also said a shift in the mix of products and services caused the overall gross margin for the quarter to decline to 16% compared with 19% a year ago.

Net income for the six months declined 27% from the year-earlier period to $16.2 million, or $1.28 a share, from $22.1 million, or $1.72 a share. Sales rose 6% to $674.5 million from $633.4 million.