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Ingram Micro Posts Double-Digit Q1 Gains

4/30/2010 03:03:39 PM Eastern
Santa Ana, Calif. - Ingram Micro reported double-digit increases in sales and profits for the first quarter, ended April 3.

Worldwide sales for the first quarter were $8.10 billion, an increase of 20 percent compared with sales of $6.75 billion in the prior-year first quarter. The translation of relatively stronger foreign currencies had a positive effect of approximately 6 percentage points.

Net income grew at greater rate than sales, reaching $70.3 million compared.  Net income in the prior-year quarter was $27.5 million-reduction programs.

"We're pleased to be back in growth mode," said Gregory Spierkel, CEO, Ingram Micro. "We're even happier to generate strong operating leverage, with the increase in operating income significantly outpacing sales growth. Our initiatives to re-energize sales and diligently manage expenses, combined with a better demand environment, drove our results this quarter.'

Spierkel added, "Every region contributed to the company's strong performance. North America's operating income more than doubled on 19 percent sales growth, while EMEA produced its highest first-quarter operating margin since 2005 with 18 percent sales growth. Asia-Pacific sales grew 28 percent, the highest of the regions, and Latin America delivered the highest operating margin. The improvements we made during the recessionary months are paying off and should continue to deliver benefits throughout the year."

North America sales were $3.29 billion (41 percent of total sales), an increase of 19 percent vs. $2.77 billion reported in the year-ago quarter.

North America operating income was $41.9 million or 1.27 percent of North America sales, compared with $12.8 million or 0.46 percent of sales in the year-ago quarter, which included $6.2 million (0.22 percent of North America sales) in costs related to the company's expense-reductions programs.
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