Ingram solid in Q1 despite Euro softness
Sets Q2 guidance
Ingram Micro beat its own financial forecasts in the first quarter despite softening economies and currencies in Europe.
Sales for the three months ending 1 April were $7.6bn, up 8 per cent on the year. Weak European currencies had a three percentage point negative effect on the year on year comparison, Ingram said. Net income was $61.7m, up 45 per cent. The company said this was better than the guidance it gave back in February.
European sales were up two per cent to $2.7bn, though Ingram said stiff price competition and some soft European economies hit its gross margins here, and the currency effect had a nine per cent negative impact on the year on year comparison. European operating income was $34.5m, compared to $37m the previous year.
Ingram said sales in the current quarter will range between $7.15bn to $7.35bn, with net income of $49m to $56m.
The firm said it plans to overhaul its IT systems, which will mean $5m of expenses in the current quarter. ®