DOW JONES NEWSWIRES
Ingram Micro Inc.'s (IM) second-quarter profit more than doubled
on lower operating costs and charges, and as worldwide sales rose
sharply and results topped expectations.
The computer-equipment distributor serves as a go-between for
some of the world's leading hardware and software companies and
information-technology departments. Ingram has seen demand pick up
in recent quarters, with significant sales growth especially in the
Asia-Pacific region. In the recent quarter, it saw high
double-digit sales growth in all its regions.
For the current quarter, Ingram predicted revenue and gross
margins would remain generally flat with the second quarter, which
for the top line would be slightly above analysts' expectations for
revenue of $8.12 billion.
Chief Executive Gregory Spierkel said work to control costs
coupled with the revenue gains had driven record profit for the
quarter, adding customers are engaged and looking for new tools and
hardware.
Ingram posted earnings of $67.7 million, or 41 cents a share, up
from $25.3 million, or 15 cents a share, a year earlier. The
prior-year results included 5 cents in charges related to reducing
expenses and to acquisitions in Asia-Pacific. Revenue rose 24% to
$8.16 billion.
Analysts surveyed by Thomson Reuters predicted earnings of 37
cents on revenue of $7.9 billion.
Gross margin decreased to 5.4% from 5.9%, though operating
expenses fell thanks to fewer severance and other costs.
In North America, sales rose 30%, making up 44% of all sales,
while the Europe, Middle East and Africa areas saw sales rise 18%,
the Asia-Pacific region recorded a 27% gain and Latin America
posted a 12% increase.
Shares of Ingram Micro closed at $16.17 and were inactive after
hours.
-By Yogita Patel, Dow Jones Newswires; 212-416-2262;
yogita.patel@dowjones.com