Distributor saw European sales fall by almost $300 million to $2.9 billion for 13 weeks ending October 3
Ingram Micro saw its revenue decline six per cent year-on-year to $10.5 billion for its third quarter, but up two per cent on a currency neutral basis.
It posted non-GAAP operating income of $169 million for the three months ending October 3, a five per cent increase on the previous year, with an operating margin of1.6 per cent.
Revenue in Europe declined by eight per cent to $2.9 billion, compared with $3.2 billion in Q3 2014. Non-GAAP operating income was down from $20 million to $18.2 million in the region.
The distributor said its cloud business had grown by more than 100 per cent in the last year, driven by the global expansion of its cloud marketplace, including a UK launch in May.
Ingram Micro said it is on of achieving annual global cost savings of $100 million in 2016, and managed to realise $5 million in cost savings during the quarter.
“We had a great quarter, reflecting continued execution on our strategy,” said Ingram Micro CEO Alain Monie.
“We drove strong operating leverage while continuing to build our capabilities in key strategic areas such as advanced solutions, lifecycle services, commerce and fulfillment solutions and cloud.
“Our teams remained focused on generating strong returns on capital, which resulted in expanded margins, with non-GAAP operating margin reaching the highest level for a third quarter in more than a decade.”
“Our focus on structurally improving our cash conversion cycle is yielding results and we now expect to generate more than $1 billion in operating cash flow for the full year, even as we deploy capital to support revenue growth in our seasonally strongest fourth quarter.”