Ingram reports record Q2 worldwide sales


27 July 2007 — Santa Ana (CA): Ingram Micro has announced financial results for the second quarter, which ended on 30 June.

Record Q2 worldwide sales of $8.19 billion were achieved, an 11 percent rise on $7.4 billion a year earlier. North American sales were $3.30 billion, relatively flat with the $3.33 billion posted in Q2 2006. EMEA sales were $2.78 billion, up 16 percent from $2.39 billion last year. Asia-Pacific sales increased 31 percent to $1.76 billion, compared to $1.34 billion in 2006 and Latin American sales were $344 million, up 4 percent on $332 million a year earlier.


Q2 net income was $52.4 million, or diluted EPS of $0.30, compared with net income of $53.8 million or diluted EPS of $0.32 in the year-ago period.


During the quarter the company recorded a $15 million ($9.2 million net of tax or $0.05 per diluted share) charge in anticipation of estimated losses associated with a Wells Notice from the Securities and Exchange Commission (SEC). The SEC believes that Ingram failed to maintain adequate books and records relating to some of its transactions with McAfee.


For the six months ended 30 June 30, worldwide sales were $16.43 billion, a 10 percent increase over the $14.99 billion reported in 2006. Regional sales were $6.58 billion for North America (a 1 percent increase versus the prior-year period), $5.82 billion for Europe (up 14 percent from 2006), $3.33 billion for Asia-Pacific (a rise of 25 percent on last year) and $689 million for Latin America (flat versus the prior-year period).


Six-month net income was $89.4 million, or diluted EPS of $0.51, compared to net income of $115.5 million, or diluted EPS of $0.68, a year earlier.


CEO Gregory Spierkel said: "We’re pleased with the quarter’s record sales and progress on our strategic initiatives. The quarter’s performance was led by the Asia-Pacific region, which generated sales growth far exceeding the pace of the local markets and operating income nearly double the levels of a year ago.


"Our other regions are also performing well, managing through the changes and investments we’re making in certain markets. During the quarter, for example, we increased marketing expenses to enhance our share in Germany, invested in strategic initiatives in North America and expanded into Argentina. These changes and investments kept net income at the low end of the range of earnings guidance we disclosed in early July, but we expect them to bear fruit in the months ahead. The global technology market is proving to be resilient and Ingram Micro is poised to take advantage of the opportunities ahead of us."