Feeds

World's biggest distie Ingram admits it can't keep up growth in UK

We're hot, but not that hot

Boost IT visibility and business value

Ingram Micro reckons the double-digit sales growth it filed for the UK and Germany in Q2 – helping soften the top line declines across Europe – is not sustainable.

The world's largest IT distributor reported group numbers last night, with sales flat globally at $8.78bn and profit up 2.5 per cent to $61.2m.

"It continues to be a challenging macroeconomic and selling environment throughout much of the world," said Ingram CEO Alain Monié.

In the North American heartland, turnover was up 2 per cent to $3.8bn and operating profit was $68.7m, up from $67.5m a year ago, driven by the US speciality, enterprise and volume tech businesses.

But in Europe, sales declined 7 per cent (growing three per cent in local currency) to $2.5bn and operating profit fell to $15m from $17m.

Monié noted "stronger sales in e-tail and retail customers" - a change from Q2 2011 - and claimed Ingram was "gaining further share" in SME – which was "a driver of strong double-digit revenue increases in Germany and the UK".

But, he added, these were "probably difficult to sustain for a long time", adding it would not be "prudent" to expect those growth rates in the future, hinting that it may have simply rented market share.

"The [Europe] region continues to experience macroeconomic challenges, which led to a heightened competitive selling environment and a higher mix of revenue in lower margin customer segments.

"I would expect that to come back to a more normal environment, although the UK and Germany had been, in our case really the two engines that have been performing the best in Europe," said Monié.

The cracks in the Southern European economy had narrowed slightly, as there was "more stability" said Ingram's boss, "but it's not a great environment obviously".

The operation in Asia Pacific grew 4 per cent to $2bn and operating profit was $14.8m, down from $16.45m a year earlier.

In Latin America, turnover climbed 14 per cent to $442m and operating income was $4.4m down from $6.4m.

The outlook is more of the same, said Ingram ,with sales forecast to be flat in Q3, which given the current global economic meltdown and seasonality could be considered as something of an achievement. ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.