Ingram Posts Record Sales, Lower ProfitsSanta Ana, Calif. - Ingram Micro reported record first quarter net sales but lower net profits. 4/23/2014 10:00:00 PM Eastern
Santa Ana, Calif. - Ingram Micro reported record first quarter net sales but lower net profits.
Net worldwide sales were $10.4 billion for the quarter ended March 29, up from $10.3 billion in last year’s first quarter. Net worldwide income was $24.8 million down from the prior year’s $49.8 million.
On a GAAP basis, operating income was $68.4 million, compared with 2013 first quarter operating income of $90.8 million.
First-quarter operating income was impacted by $47 million pre-tax in reorganization, integration and transition costs primarily related to the company's organizational effectiveness programs and continued BrightPoint integration.
Among key first-quarter business highlights was Ingram Micro’s organizational effectiveness programs, which are designed to further enhance the company's ability to innovate and respond to market needs with greater speed and efficiency. As a result of the alignment and de-layering programs, the company expects annual savings between $80 million and $100 million, and a similar level of one-time restructuring, integration and reorganization costs.
Separately Ingram Micro Mobility today said it was named the preferred handset distributor and services provider for the 360 Group, a consortium of four of Verizon Wireless' largest national dealers including A Wireless, Diamond Wireless, Go Wireless and Moorehead Communications.