Ingram plans growth spurt

Distribution giant Ingram Micro is planning to become a $40bn company in the next three years. 

The firm revealed earlier today that it expects to reemphasise its continued focus on profitable growth at its investor conference tomorrow.

Chief executive Greg Spierkel said the firm plans to reach its targets with a combined approach of core-business enhancements and expansion into adjacencies.
These include a broader reach into higher-margin technology segments with the launch of an Infrastructure Technology Solutions Division in North America, geographic expansion into Argentina and South Africa, further expansion into China and expansion of AVAD – Ingram’s specialised high-end home entertainment and automation division.
"There is no structural reason why the company cannot grow to at least $40 billion in sales and 150 basis points of annual operating margin in three years,” Spierkel said.

"Our growth strategy is aggressive yet attainable," added Spierkel. "The company's expansions over the past three years have positioned us well ahead of our chief competitors with a portfolio unmatched in the industry. I fully expect our actions over the next three years to be at least as active, with a focus on improving top-line growth and profitability by optimizing our core distribution business while developing opportunities in specialty areas outside our traditional core."

In preparation for the investor conference, the company re-affirmed sales and income guidance for the second quarter (ending June 30, 2007). This guidance, based on the company's current expectations and internal forecasts, is forward-looking and actual results may differ materially, as outlined in the company's periodic filings with the Securities and Exchange Commission.

Turnover is expected to range from $8bn to $8.25bn and profit is predicted to fall between $59m and $65m.

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