Ingram Micro Posts Record Quarterly Profits and Revenues

Last week, Ingram Micro posted record quarterly worldwide sales totaling $11.38 billion. In the same quarter a year ago, the company's fourth-quarter results were $9.95 billion. Having acquired BrightPoint and Aptec Holdings Ltd. recently have resulted in the high quarterly revenues of $1 billion and $75 million respectively.

Compared to the fourth-quarter of 2011 when the worldwide gross profit measured $554.3 million (5.57 percent of total sales), this year it measured $661.2 million (5.81 percent of total sales). This improvement is another record for the company.

The operating income was $167.9 million (1.48 percent of sales), and the net income was $101.4 million, or 66 cents per diluted share.

The CEO of the company, Alain Monie, stated: "Our fourth-quarter financial performance confirmed our improved execution, as the entire company responded well to the challenge to drive a sense of urgency, better execution and increased profitability across the organization. While we are entering 2013 well-positioned to drive better returns on capital and reasonable revenue growth across the business, there are several key objectives on which we must deliver. We must return Australia to a profitable, growing business. We also must continue to execute on the integration of BrightPoint and realization of cost and revenue synergies. We will maintain our historic focus on operational excellence, while combining improvements in returns on invested capital with revenue growth. Additionally, we will continue to examine opportunities to free up and reallocate capital from underperforming businesses into areas of better returns."

Other highlights from the postings revealed that the North America revenues had risen by 6 percent, and this illustrates the highest sales for Ingram Micro in over a decade. There was also double-digit growth in Ingram Micro's SMB sales, and couples with the strengthening of specialty divisions.

All-time record fourth-quarter revenues were recorded in Latin America with growth of 5 percent in U.S. dollars. Additionally, fourth-quarter sales in Asia Pacific also posted a record with an 11 percent revenue growth in the last year.

Downpoints of the data postings reveal that the European quarterly revenues had dropped by 4 percent in U.S. dollars, compared to last year. A seasonal decline is also expected by Ingram Micro in the first quarter of 2013, and this is consequential of an anticipated downturn in the Santa Ana, California-based distributor's logistics services.

However, consolidated revenue growth in the low teens is also expected by the company for the rest of the year. (CY) Link