Brightpoint’s new European distribution hubs on track

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Handset distributor Brightpoint set to open Swedish and Slovakian ‘centres of excellence’ in early New Year, as reorganisation of European business gathers pace

US distributor Brightpoint said this month its plan to open four main distribution centres, or ‘centres of excellence’, is on track.

Brightpoint, which is on course to record an increase in 2010 device shipments of 18-20 per cent to between 98-100 million, said its Swedish centre will be operational by early next year. It will be followed by a second hub in Slovakia.

Brightpoint executive vice president and chief financial officer Anthony Boor said: “I was in Europe recently and I can tell you that our team is motivated and the vendors I met with are excited about the strategies that we have there. Our centre of excellence in the Nordic region is progressing well and is on schedule to be operational in the first quarter of 2011.”

He added of the European business: “When you have the manufacturing relationships that we have in Europe, which I think are the broadest of any, along with a good workforce, a good reputation and the channels we are in, that turns into some real value for our shareholders, long term.”

Brightpoint handled 14 per cent more devices in the quarter ended September 30, compared to a year ago, with revenue from distribution activities jumping nearly £25 million.

It has retained its target of increasing shipments by 18-20 per cent to 98-100 million units in the full year, outrunning the increase in global handset sales, expected to be up 12-14 per cent.

The total number of wireless devices handled by Brightpoint over the quarter increased from 21,792 to 24,907. Revenue for the three months increased from £532 million to £546 million, with distribution revenue growing from £474 million to £497 million.

This uplift was tempered by a decline in revenue from logistic services, from £58 million to £49 million. Operating income rose from £7.8 million to £8.9 million, although income from continuing operations fell from £11.3 million last year to £7 million in Q3 2010.

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