Ingram Micro: "We're back in growth mode"

Ingram is pushing for 2010 to be one of the best in its history

Ingram Micro has recorded its strongest profit growth in more than a decade with its first quarter 2010 results and is aiming for one of the ‘best years in its history’.

The broadliner saw turnover grow to $8.1bn for the quarter ended 3 April 2010, up 20 per cent compared to Q1 2009 ($6.75bn). Net profit more than doubled to $70.3m, compared to $27.5m in 2009.

Drilling into EMEA, the distribution behemoth saw sales grow 18 per cent to $2.67bn (33 per cent of total sales), compared to $2.27bn in 2009.

Greg Spierkel, chief executive of Ingram, said: “We’re pleased to be back in growth mode. We’re even happier to generate strong operating leverage with the increase in operating income significantly outpacing sales growth.”

He praised the firm’s grip on costs and welcomed an increase in demand for business.

“Every region contributed to the company’s strong performance,” he said. “North America’s operating income more than doubled on 19 per cent sales growth, while EMEA produced its highest Q1 operating margin since 2005 with 18 per cent sales growth. Asia-Pacific sales grew 28 per cent, the highest of the regions, and Latin America delivered the highest operating margin. The improvements we made during the recessionary months are paying off and should continue to deliver benefits throughout the year.”

Chief financial officer William Humes, added: “We are driving the right balance of growth, profitability and working capital to improve returns. Gross margins and working capital were within our expectations in this higher-growth environment, while operating expenses as a percentage of sales improved significantly due to our diligent control of costs and the benefits from our prior streamlining efforts. Our business is on a strong footing, ready to support increasing demand from a recovering economy.”

Looking forward, Spierkel said he expects growth to continue, with Q2 always being ‘seasonally softer’ than the first.

“I’m looking forward to this year,” he said. “The economic recovery is becoming more tangible and our business improvements have set the stage for continued success. We are focused on driving profitable sales growth while investing in systems enhancements and expansion opportunities that will improve our competitive position and, ultimately shareholder returns. The team is energised and working towards making 2010 one of the best years in our history.”