Tech Data is preparing for a slump in sales this quarter after exiting certain markets and selling off some of its business units to Ingram Micro.
Yesterday, the global distributor announced it had exited the Chilean and Peruvian markets and sold the business there to Ingram. The firm also plans to leave the Uruguayan market. It said the move would allow it to focus on its Latin America export business in Miami as well as its more mature Mexican arm.
In a Q4 and full-year earnings announcement today, Tech Data said the move will have an impact on future sales.
"For the first quarter ending 30 April 2015, the company expects low-single-digit year-over-year sales declines in both regions in local currency," it said. "This outlook takes into account the loss of approximately $75m (£50.85m) of net sales due to the company's exit from Chile, Peru and Uruguay."
For the three months to 31 January, net profit at Tech Data fell 26.5 per cent annually to $80.7m on net sales over the same period which fell 7.9 per cent to $7.34bn. Excluding the negative impact of certain currencies weakening against the US dollar, net sales in Q4 would have been flat annually, the firm said.
In the Americas region in Q4, net sales were down five per cent year on year to $2.6bn while in Europe, net sales fell nine per cent over the same period to $4.8bn, although in euros, net sales grew one per cent.
For the full year, net profit tumbled 2.6 per cent to $175.2m on net sales which jumped 3.2 per cent to $27.7bn over the same timeframe.
Tech Data chief executive Robert Dutkowsky said: "Our fourth quarter capped a successful fiscal year for Tech Data – a year in which we achieved profitable revenue growth and improved non-GAAP earnings, while making considerable progress on a number of operational fronts.
"I am proud of our team's achievements in fiscal year 2015, but we have now turned our attention to the many opportunities that lie ahead."
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