DOW JONES NEWSWIRES
Ingram Micro Inc.'s (IM) first-quarter profit more than doubled
on prior-year restructuring costs and higher sales.
More "strong" year-over-year growth is anticipated this quarter
following the latest period's better-than-expected results for the
computer-equipment distributor
"We're pleased to be back in growth mode," said Chief Executive
Gregory Spierkel.
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.
Fitch Ratings recently said it expects the sector to see modest
sales growth this year as corporate IT demand improves. Last month,
rival Tech Data Corp. (TECD) said its fiscal fourth-quarter
earnings climbed 23% and revenue rose 10% on a boost from the
weaker dollar and a tax-valuation benefit.
For the latest quarter, Ingram reported a profit of $70.3
million, or 42 cents a share, up from $27.5 million, or 17 cents a
share, a year earlier. The prior year included 6 cents of
restructuring charges and the latest quarter had a 1-cent
divestiture gain.
Revenue rose 20% to $8.1 billion, nearly one-third of the growth
due to currency changes.
Analysts estimated earnings of 39 cents on revenue of $7.88
billion, according to a poll by Thomson Reuters.
Gross margin fell to 5.5% from 5.6%; Ingram had forecast a drop
from the fourth quarter's 5.7%.
Ingram's shares were flat after-hours at $18.55.
-By Kathy Shwiff and Kevin Kingsbury, Dow Jones Newswires;
212-416-2357; Kathy.Shwiff@dowjones.com