Article Abstract:
Densitron International supplies electronic components and displays and has invested in designing its own products, a move which is bringing benefits. The company has set up a JV in Taiwan, and this has accounted for most of Densitron's profits, a situation that will change as other divisions contribute more. Customers have to place orders before Densitron invests in developing components. The company's LCDs have a good reputation. Densitron has not been unduly affected by economic problems of Far Eastern countries and is helped by its Taiwanese manufacturing facility.
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Article Abstract:
Premier Farnell saw a drop in its share price following an announcement that the company was acquiring Premier for 1.85 billion pounds sterling. The acquisitions stretches Farnell's finances and benefits will not be immediate, but Farnell gains access to one million customers in the US. Premier's products can also be sold in the UK, and Premier Farnell's group sales should increase by 50 million pounds sterling. Premier Farnell is also able to move away from the cyclical activity of volume parts distribution through the deal.
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Article Abstract:
Electrocomponents is a UK company which distributes electronic parts. The company guarantees rapid delivery, which tends to be more important than price for its clients. This allows high margins, and the company's size means that suppliers cannot easily exert price pressure. Bad debts are not a problem since orders tend to be of a small value, and further supplies are not made until deliveries have been paid for. The company has resources to expand abroad and has acquired distributors in Spain and Singapore.
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