IT distributor Ingram Micro reported worldwide sales of $8.81 billion (£5.7 billion) in the fourth quarter of its financial year ended January 2, 2010, a one per cent increase year-on-year.
Ingram Micro reported net income in the quarter of $107 million compared with a net loss of $564.3 million in the fourth quarter of 2008, while Europe, Middle East and Africa (EMEA) sales grew four per cent to $3.05 billion, which accounted for 35 per cent of total sales, compared with $2.95 billion in the fourth quarter of 2008.
In the 12 months ended January 2, 2010, it reported a 14 per cent decrease in worldwide sales at $29.52 billion from $34.36 billion, which it said was down to the challenging global economy and weak exchange rates. Sales in EMEA were $9.48 billion, an 18 per cent decrease year-on-year.
Ingram Micro chief executive Gregory Spierkel said: “We ended 2009 on a high note, with strong sequential growth in the final two quarters and good progress in our largest regions.
“North America delivered the highest sequential sales growth in seven years, on top of the near-record sequential growth in the third quarter. EMEA is back on track with operating income at healthy, pre-recession levels, while Asia-Pacific generated year-on-year growth. The benefits of our expense-reduction actions were evident, even excluding the impact of the prior year goodwill impairment charge, as operating expenses declined on higher revenues compared with the prior-year period. There is still more work to do, but the trends are positive and we are externally focused on growth with enhanced profitability.”
Ingram Micro senior executive vice president and chief financial officer William Humes said: “We made progressive improvements in the last half of the year and delivered a modest increase in revenues despite fewer selling days compared with last year’s fourth quarter. The two years of work toward reducing expenses, fixing underperforming businesses and adjusting terms and conditions for certain accounts are paying off, providing a strong platform for future operating leverage. We intend to drive growth intelligently, balancing gross margin stability, expense maintenance and working capital management to enhance profitability and return on invested capital. Our strong balance sheet provides ample capacity to invest in advantageous expansion opportunities.”
Spierkel said it expects to see a strong year-on-year growth in the first quarter of 2010. “We are encouraged by signs of economic growth. The improvements we’ve made since mid-2008, coupled with our re-energized attitude toward profitable growth, have us well-positioned for the rebound in demand. While we do not expect the economies to improve uniformly among all regions, we are singularly focused on improving returns on invested capital through profitable growth and enhancing total returns for our shareholders.”