Feeds

World's biggest distie cans Euro growth hopes for 2013

Ingram Micro 'not planning on any significant growth'

Top 5 reasons to deploy VMware with Tegile

Ingram Micro's European operation is likely to continue to be the group's metaphorical fly in the ointment for 2013 with "no significant growth" forecasted by senior execs.

The world's largest IT distie last night reported calendar Q4 numbers showing a 14 per cent rise in turnover to $11.38bn, including $1bn and $75m of sales from the BrightPoint and Aptec acquisitions respectively.

Remove those buys from the top line and organic growth was a more modest rise of 3.5 per cent year-on-year, and this during what is Ingram's seasonally strongest sales period.

Operating income did not grow at Ingram - despite an $11.3m contribution from BrightPoint - falling from $176.1m a year ago to $167.9m this year, including a restructuring charge of $8.6m. Net profit dipped to $101.3m from $104.8m.

But while Ingram grew the top line across the majority of its geographies, Europe was again highlighted as the troublesome region - as it is for rivals Arrow and Avnet.

Turnover in the region fell four per cent in dollars to $3.08bn and operating income dived by 37 per cent to $51.8m.

"Overall, the region performed relatively well given the macroeconomic climate and strong competition," said Bill Humes, CFO at Ingram in a conference call with analysts.

The wholesaler generated a six per cent sales hike in the US and Canada to $4.46bn fuelled by SME and higher margin speciality units. Despite this, operating income fell 13 per cent to $78.3m.

In Asia Pacific and Latin America, sales grew 11 and five per cent respectively to $2.19bn and $602.7m, while operating income grew in each territory.

CEO Alain Monie, said it expected the biz in North America to grow beyond Gartner predictions, and it held high hopes for Asia Pacific.

"Europe, frankly, continues to be the mixed bag that we've been talking about, and we're not planning on any significant growth in 2013," he said.

For the calendar 2012, sales at Ingram climbed to $37.8bn from $36.3bn in the previous year and net profit went up to $306m from $244m.

Monie said the staffers had responded to the challenge he issued a year ago, when he became CEO to "drive a sense of urgency, better execution and increased profitability".

He said the company had invested in its data centre biz and that IBM had responded by adding it to the pSeries roster Stateside, while Ingram had also taken on Qualcomm logistics, expanded in the data capture space and closed the $840m acquisition of BrightPoint. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.