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Tech Data sales up, profits down

There may be trouble ahead

Technology distie Tech Data made sales of $5.4bn for the third quarter ended 31 October, an increase of seven per cent on the third quarter of fiscal 2006.

But net income was down to $9.6m compared to $23m in the same period last year. This includes $6.1m charges for restructuring European business and $2.8m paid to consultants on the project.

The Americas made up 48 per cent of total sales with Europe, Middle East and Africa bringing in the remaining 52 per cent.

Gross margin fell slightly in the period to 4.56 per cent of net sales, compared to 4.95 per cent in the third quarter of 2006.

Looking forward Tech Data predicted sales in the range of $5.75bn to $5.90bn, but the company refused to predict likely operating profits saying "the company does not believe it it would be appropriate to provide specific guidance due to the complexity of the factors impacting the performance in our EMEA region". ®

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