DOW JONES NEWSWIRES
Ingram Micro Inc. (IM) swung to a fourth-quarter profit
following a prior-year $742.6 million write-down.
Shares slid 1.7% to $18.20 in after-hours trading although the
computer-equipment distributor's results topped Wall Street's
expectations. The stock has gained 50% in the past year.
The company predicted sequential declines in first-quarter
revenue and gross margin matching usual seasonal patterns but
"strong year-over-year growth." Analysts had expected a 12% revenue
increase, according to Thomson Reuters.
Chief Executive Gregory Spierkel said Ingram had strong
sequential growth in the last two quarters of 2009 and "good
progress in our largest regions." The company also benefited from
cost cutting, he said.
Ingram, a middleman between some of the world's leading hardware
and software companies and thousands of information-technology
departments, has seen sales pick up in recent months along with
much of the technology sector. Sales are likely to grow more later
this year as the economy improves and companies with pent-up demand
start spending on technology products.
For the latest quarter, Ingram reported a profit of $107
million, or 64 cents a share, compared with a year-earlier loss of
$564.3 million, or $3.48 a share. The latest results included a net
gain of 3 cents.
Revenue rose 1.4% to $8.81 billion--they would have dropped some
5% excluding currency change. In October, Ingram predicted a
single-digit sales decline.
Analysts estimated earnings of 52 cents on revenue of $8.35
billion, according to a poll by Thomson Reuters.
Gross margin fell to 5.7% from 5.9% on softer volumes in the
fee-for-service division and more business in lower-margin regions
such as China.
Sales fell 5.5% in North America, which provided 41% of total
revenue, and 2% in Latin America, while growing elsewhere.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com