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.
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