DOW JONES NEWSWIRES
Ingram Micro Inc.'s (IM) second-quarter earnings fell 12% as
business disruptions from the transition to a new enterprise system
in Australia more than offset higher revenue.
Revenue topped estimates, and shares rose 7.5% to $18.33 in
after-hours trading.
"Demand for commercial technology products has moderated but
remains solid throughout the world," Chief Executive Gregory
Spierkel said, adding sequential sales growth in the third quarter
will be higher than the year-ago period.
The computer-equipment distributor serves as a go-between for
some of the world's leading hardware and software companies and
information-technology departments. The company's revenue has grown
in recent quarters as demand for electronics has increased with
improving economy. However, Ingram has had to address difficulties
transitioning to a new enterprise system in Australia.
Ingram reported a profit of $59.7 million, or 37 cents a share,
down from $67.7 million, or 41 cents a share, in the same period a
year earlier. Revenue jumped 7.2% to $8.75 billion.
Analysts polled by Thomson Reuters had most recently forecast
earnings of 37 cents a share on $8.57 billion in revenue.
Gross margin narrowed to 5.3% from 5.4% on system-implementation
complications in Australia and weakness in some Asian and European
consumer markets. Operating expenses grew 8.8%.
Sales in North America rose 5.6%, while Europe, the Middle East
and Africa sales increased 11%. Sales in the Asia-Pacific region
rose 4.8%, while they increased 7.5% in Latin America.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com