Ingram’s EMEA sales slump 32pc

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Ingram Micro’s sales in Europe, the Middle East and Asia (EMEA) in the second quarter dipped 32 per cent compared with the same period last year.

EMEA sales were $2.01 billion (£1.19 billion), which amounted to 31 per cent of the US IT distributor’s total revenues for the three months ended July 4.

Operating income in EMEA was $10.2 million, 0.51 per cent of revenues, which included $1.5 million in expense-reduction costs.

For the six months ended July 4, global sales also declined as Ingram Micro reported worldwide sales to be $13.32 billion, a 23 per cent decrease compared with the same quarter last year ($17.39 billion).

Worldwide sales for the second quarter were $6.58 billion, a 25 per cent decrease from $8.82 billion year-on-year.

It said the decrease during the quarter was down to weaker demand caused by the economic downturn.

Ingram Micro chief executive officer Gregory Spierkel said: “I continue to be pleased with our performance in this difficult economic environment. Since we first experienced the effects of the economic downturn early last year, we have focused on operational improvements directly within our control.

“These include managing working capital and expenses, shedding underperforming operations and enhancing gross margins. These are generating visible results.

“With many of the improvements behind us, we are now in a position to leverage our strong balance sheet and improved infrastructure to begin driving towards pre-recession operating levels.”

Ingram Micro said its recent cost-reduction measures which were put in place late last year will see its larger regions benefit from improved operations.

It aims to cut costs by $5 million per quarter and said it has saved half of its one-year goal of saving between $25 to $30 million by the end of 2009.

Spierkel added: “Our efforts to protect return on invested capital and improve our business mix have delivered industry-leading balance sheet metrics and solid gross-margin performance but have also contributed to the sales decline in recent quarters.

“We now plan to place a greater emphasis on securing incremental sales while maintaining our focus on operational excellence and profitability.”

 

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