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Ingram Micro Q1 Profits Up 74%

Santa Ana, Calif. — Global tech distributor and supply-chain services giant Ingram Micro enjoyed a 74 percent increase in first-quarter net income, to $43 million.

Net sales for the period, ended April 4, rose 2.5 percent to $10.6 billion. Unfavorable currency fluctuations negatively impacted net sales by 8 percent, the company said.

Ingram Micro CEO Alain Monie said the gains reflect “healthy demand across our geographic regions,” led by Asia Pacific and Latin America. Earnings were also buoyed by expanded, higher-margin Cloud and supply-chain capabilities.

North American results trailed other regions due to lower mobile gross margins as a result of increased Verizon channel sales and lower-than-expected resale pricing of returned handsets. The company said it is addressing the underperforming areas of its mobility business and will either improve their profitability or exit those businesses.

Monie also announced a global cost-cutting program that will save the company about $100 million a year starting in 2016, following a one-time, $100 million hit.