Decline in distribution

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EMEA semiconductor distribution sales declined 11.4% in the fourth quarter of 2008 and 7.9% for the total year.

The report by DMASS (Distributors’ and Manufacturers’ Association of Semiconductor Specialists) reveals that the market slowdown has accelerated due to a world economic crisis. According to DMASS, the global economic crisis is hitting the electronics components distribution market with full force. The downturn trend from the previous quarters continued and accelerated in the fourth quarter of 2008 for which DMASS reported a decline of 11.4% compared with the same period for 2007. The combined membership achieved quarterly distribution revenues of €1.09billion. For the full year, DMASS reported revenues of €5.02bn – a decline of 7.9% against 2007. All regions have been affected, with Eastern Europe in decline in Q4 compared to Q4 last year (-1.4%). The only countries with Q408 over Q407 growth were Austria, Poland, Hungary and the emerging countries in Eastern Europe. Russia had a double digit decline, while Germany declined least in Q4 (-7.8% to €352million), followed by France (-9% to €93mn) and the UK (-13.4% to €100mn). The DMASS reveals that the UK suffers a severe currency effect that diminishes the local market value quite significantly. Italy, second biggest major region in Europe, slumped by 20.8% in Q4 to €119mn. All other regions or countries except Israel (-1.9%) and Sweden (-8.1%) declined in double digits. For the full year, Eastern Europe remained positive (5.8%), while Germany only declined by 5%.