Acquisitions helped swing the sales dial north for Ingram Micro during calendar Q3 but the cost of the latest company-wide transformative activities took a chunk out of profits, the world’s largest tech distie has confirmed.
Revenues grew 11 per cent to $11.23bn for the period ended September, oiled in no small way by portable device shipments hurtling out of Brightpoint, a business Ingram bought for $850m at the back end of ’12.
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Technology and Solutions, the classic IT wholesaling arm of Ingram, grew five per cent to more than $9.2bn, but Mobility - the shining star of the show - was up nearly 50 per cent year-on-year to $2bn, the company stated.
Ingram CEO Alan Monie claimed the numbers suggested it was taking share from distie rivals.
Sales in North America leaped by almost a fifth year-on-year to $5.1bn; the Mobility unit expanded by nearly 200 per cent; the XP PC refresh was ongoing; and networking sales were described as “standout”.
In Asia Pacific and Latin America sales were down four per cent and up 17 per cent respectively to $2.4bn and $525m.
More modest growth closer to home saw Ingram report a nine per cent spike in revenues for Europe to $3.2bn, with “strength in retail markets” playing a big role, as was stronger spending among SME resellers.
Chief beanie Bill Humes said the region is “benefitting from cost savings as a result of the initial implementation of our organisational effectiveness, and we expect to see improvements in Europe’s cost structure” in 2015.
Ingram is already mid-way through a sweeping reorganisation that will see the business undertake numerous initiatives, including delayering management and centralising certain back-office functions.
This process, along with the cost of integrating Brightpoint, could be seen in the Q3 numbers as a 14 per cent hike in operating expenses (a climb in S,G&A plus hefty re-keg costs) left Ingram nursing a 13 per cent slid in operating profits to $119.7m.
Net profit was down seven per cent to $72.23m. ®