|
|
|
02 Aug 2006
Tech Data has blamed continuing tough trading conditions in Europe as a major reasons for its lowered turnover predictions in its preliminary second quarter 2007 results.
The broadliner, whose UK division is Computer 2000, revealed it expects to post a Q2 turnover of around $4.94bn, down from initial predictions of between $4.95bn and $5.10bn.
Net profit for the quarter, excluding any restructuring charges and consulting costs related to the EMEA region, is now expected to be near breakeven. Tech Data's previously announced profit outlook for Q2 was in the range of $17m to $20m, excluding restructuring charges.
Steven Raymund, chief executive of Tech Data, said: "We are clearly disappointed with our operating performance in EMEA. While our restructuring program and related efforts to realign our EMEA organisation over the last year have provided benefits, the internal disruptions related to such initiatives coupled with the challenging market environment and competitive margin conditions have hindered our progress.
"It will undoubtedly take longer than originally anticipated to improve our operating performance in EMEA," he said.
However, the preliminary announcement is an improvement on the distributor's second quarter of 2006 financial results, in which it generated a turnover of $4.8bn.
Further Reading:
Related articles
In this video find out about the fast-growing Chinese vendor's plans for market domination and how the channel is its route of choice
Find out what gifts Acer has in store for partners for 2012 in this exclusive roundup of its recent conference
CRN's premier networking event is back on 17 May at the Ricoh Arena
Date: Thu 17 May 2012
Channel fighters preparing to square up once more on 24 May
Date: Thu 24 May 2012
The proliferation of endpoint devices within the enterprise has highlighted the shortcomings of one of the traditional approaches to data security
This Forrester report compares the costs and benefits of legacy email and productivity software with Google Apps
Dave discovers that rozzers are seemingly living in the technology dark ages
Mark Needham, founder of distributor Widget, argues that John Browett leaves for Apple with Dixons in better shape than when he arrived
|
|
|
Do you agree?
Have your say