Ingram sees solid business demand

Tech distributor Ingram Micro has said that demand for technology products in the commercial sector remains solid, although it noted soft demand in the consumer segment.

Tech distributor Ingram Micro has said that demand for technology products in the commercial sector remains solid, although it noted soft demand in the consumer segment.
 
IM’s worldwide sales in the second quarter increased 1% in local currencies to $8.75 billion.
 
While North America and Latin America sales increased, local currency sales in the EMEA and Asia-Pacific regions were down 2% and 3% respectively.
 
Europe was hit by soft consumer demand in a segment that accounts for around 30% of sales in the region, while disruptions in Australia due to the implementation of the SAP ERP system caused the decline in Asia-Pacific.
 
Total company operating income was $97.1 million (1.11% of total sales) versus $104.6 million (1.28% of sales) in the same quarter last year.
 
North America operating income grew 24% to $67.6 million, with operating margin jumping from 1.54% to 1.80%.
 
The overall operating income decline was due to the same European and Australian issues that hit sales in those regions.
 
Europe is also migrating to SAP, but this has so far not had a significant impact on sales or margins, with the Netherlands and Belgium having made the switchover so far.
 
However, a planned SAP migration in Brazil this autumn has been postponed as IM says it doesn’t want to lose momentum in a market where it has seen a recent improvement.
 
CEO Greg Spierkel called the new ERP system the “most significant” of the company’s current improvements and said that the long-term benefits outweigh the current challenges.
 
Looking ahead, IM said that global technology demand is unlikely to change in the third quarter, but that it is pleased with recent initiatives such as its new cloud marketplace.