As part of its preliminary results for its second fiscal quarter 2019, American giant Arrow Electronics has announced a planned wind-down of the company’s personal computer and mobility asset disposition (ITAD) business. The company elected to initiate actions to close its personal computer and mobility asset disposition business, whose past results have been included as part of the global components business, in the United States and most other countries in which this business operates. The company initiated the process of making its employees aware of the decision beginning on July 15, 2019. The company is also proposing to close this business in Belgium, Sweden while the United Kingdom has already been sold back to its previous owner Computacenter, but will start the consultative process with employees' representatives.
“After careful market analysis indicating that business dynamics have changed since we entered this market, we have decided to wind down operations at our personal computer and mobility asset disposition business”, said Michael J. Long, chairman, president and chief executive officer. “This will allow us to continue to focus on our cross-enterprise strategy to enable next-generation technologies such as artificial intelligence, industrial automation, smart cities and vehicles.”
As a result of winding down the personal computer and mobility asset disposition business, the company expects to incur charges of approximately €102 million. These charges will be incurred primarily in the second quarter of fiscal year 2019, with the remaining amounts being incurred throughout the second half of 2019 and first half of 2020. The charges include an estimated €67 million non-cash impairment of certain long-lived and intangible assets and an estimated €35.6 million future cash expenditure primarily related to personnel and other exit and disposal costs. The company expects that operations will cease and the remaining wind down of the personal computer and mobility asset disposition business will be substantially complete by the end of 2019.