Avnet Cuts 775 Jobs; Results Trail Estimates

Avnet Inc. cut 775 jobs, a 6.5% reduction, and the second-biggest U.S. distributor of computer parts said fiscal fourth-quarter results trailed estimates as sales fell.

Excluding certain costs, Avnet said in a preliminary look at results that it broke even on a per-share basis in the quarter ended June 28. The company was projected to earn 3 cents.

Sales were about $100 million less than the $2.54 billion in the year-ago fourth quarter as demand for microprocessors and disk drives declined, the Phoenix-based company said. Chip makers are grappling with a demand slump that began in 2000. Orders are growing slowly, forcing prices down and leaving the industry with idle capacity and extra inventory, Avnet and analysts say.

The cuts will leave Avnet with about 11,100 workers.

Shares fell 64 cents to $19.48 on the New York Stock Exchange.