Distributor Ingram Micro claimed Europe has ‘turned the corner’ in its third quarter 2006 results.
The broadliner saw third quarter turnover grow eight per cent to $7.5bn, compared to $6.96bn in Q3 2005.
Profit stood at $58.5m for the quarter compared to $40.4m last year. The results included major program and integration costs of $7.2m related to the company’s outsourcing and optimisation plan in north America and the integration of Tech Pacific, which the company acquired in November 2004. European turnover increased four per cent to $2.43bn.
Chief executive Greg Spierkel said: “The company delivered another solid quarter with revenue growth in all four regions. Europe turned the corner after a highly competitive first half, delivering record third-quarter sales and operating income.”
For the nine months ended 30 September 2006, worldwide turnover stood at $22.5bn, an eight per cent increase over the $20.85bn reported last year. Profit for the nine months was $280.8m compared to $230.5m last year.
Looking forward the distributor seems bullish, predicting turnover of between $8.4bn and $8.6bn, with profit reaching between $85m to 492m.
"We expect solid year-over-year sales growth and a sequential increase reflecting seasonality in line with historical norms," added Spierkel. "We've made key strategic investments that have spurred our growth and extended our leadership position. Ingram Micro is stronger and more competitive than ever before in its history, with a talented team leading us toward a successful future."
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