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Distributor Tech Data has seen its first quarter profit plummet by 62 per cent, as a result of declining sales and restructuring costs.
For its fiscal first quarter 2007, ended 30 April 2006, Tech Data saw profit, based on Generally Accepted Accounting Principles, fall from $33.5m to $12.9m. Turnover declined 2.4 per cent to $4.9bn compared to $5bn during the same period last year.
The distributor's first quarter figures also revealed a $6.5m restructuring cost together with $4.1m in consultation costs, following its restructuring programme throughout EMEA (CRN, 28 Nov).
Steve Raymund, chief executive of Tech Data, parent company of Computer 2000 in the UK, said in a statement: "We continue to make progress in EMEA as we proceed with the restructuring programme and the consolidation of facilities, laying the foundation for improved profitability in the second half of the current fiscal year.
The distributor's results follow disappointing fourth quarter results and sale of its Azlan Training arm in EMEA to Global Knowledge for an undisclosed sum (CRN, 13 March).
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