Profits slashed at Tech Data

Distribution giant sees flat sales but profits plummet

Tech Data, parent company of Computer 2000 has reported flat sales, but profit has almost halved for its fourth quarter, ended 31 January, 2006.

Net sales for the fourth quarter were $5.5bn, a decrease of 1.3 per cent from $5.6bn in the fourth quarter of fiscal 2005 and an increase of nine per cent from the third quarter of the current fiscal year.

Profit from continuing operations based upon Generally Accepted Accounting Principles for Q4, was $28.5m compared to profit from continuing operations of $58.1m, for the prior-year period. This include $6.8m of restructuring charges and $4.4m of consulting costs related to the company's restructuring programme in EMEA.

"We were pleased to complete the fiscal year with strong operating results - highlighted by our continued progress in better aligning our EMEA cost structure," commented Steve Raymund, Tech Data's chairman and chief executive officer. "The focused efforts of our employees worldwide once again made the difference throughout our operations."