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Ingram let down by Europe in second quarter

Single-market obstacles

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Ingram Micro reported a “solid” second quarter yesterday but its figures included further evidence of a flaccid IT market in Europe.

The distribution giant turned in revenues of $7.4bn in the three months to July 1, up 8 per cent on the year.Net income was up 29 per cent to $53.8bn. This resulted in earnings per share of $0.32. The figures were in line with forecasts.

The firm said sales and operating income were up by double digits in three of its four regions – none of the three was Europe.

Europe was “challenging” during the quarter, Ingram said, though it managed to mitigate “single-market obstacles through our diversified global footprint and expansion into adjacencies.” That seems to suggest it made the best of opportunities in other markets.

Ingram said Europe had been knocked off course by “specific vendor actions during the quarter.” Which makes a change from blaming the World Cup.

Europe turned in operating income of $19.6m on revenue of $2.4bn. This compared to North America’s $53.4m operating income on $3.3bn, Asia Pacific’s $16.1m on $1.3bn, and Latin America’s $6.6m on £331.8m.

Ingram’s third quarter revenues should come in between $49m to $56m, on revenues of $7.3bn to $7.5bn.®

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