The Channel logo

News

By | Joe Fay 26th April 2012 21:21

Hard disk prices help shore up Ingram Micro sales

But post flood bonanza will dry up in Q2

Ingram Micro saw revenues stall but net income jump in its first quarter, as it reaped the benefit of rising disk drive prices, and sales growth in America, Germany and the UK.

The tech distribution giant turned in sales of $8.64bn for first quarter ending March 31, a slip of 1 per cent on the year. Ingram put the sales dip down to "the translation effect of foreign currencies" which it said had a negative year on year impact of 1 per cent. Meaning sales effectively stalled otherwise.

Net income came in at $89.97m, up 59.9 per cent on the year. This included a tax benefit of $28.5m, charges of $3.1m related to the transition of the CEO and cost cutting, and losses of $4.8m on Euro-based inventory purchases.

Ingram said it expected second quarter sales to be flat to slightly up sequentially, though margin will slip due to seasonal factors and the waning of the Thai-flood inspired spike in disk drive pricing.

The disty's European business slipped from $2.9bn last year to $2.7bn this year, with operating margin dropping from 1.12 per cent to 0.83 per cent. However, Ingram said its German and UK businesses showed moderate sales increases on the year.

The US business turned in $3.6bn, up on last year's $3.5bn, with margins climbing from 1.69 per cent to 1.93 per cent. Favourable disk drive pricing was cited as one of the reasons for the North American performance, as well as double digit sales growth in its speciality products business.

Ingram also saw double digit sales growth at its India and China business which helped its Asia Pac operation hit an all time high of $1.9bn in sales, with 0.74 per cent operating margin. ®

alert Send corrections

Opinion

Baby looks taken aback/shocked/affronted. Photo by Shutterstock

Kat Hall

Plans for 2 million FTTP connections in next four years 'not enough'
Microsoft CEO Satya Nadella
Stranded_ships

Chris Mellor

Thousands of layoffs announced as spinning rust enters its death spiral

Features

Locker room jocks photo via Shutterstock
Best locker-room strategy: Avoid emulating AWS directly
STRASBOURG, JUNE 29, 2016: The seat of the European Parliament. by Marco Aprile for shutterstock. EDITORIAL USE ONLY
Plan b, image via Shutterstock
EU workers, new markets: post-Brexit pressure on May & Co
Tough question, pic via Shutterstock