European high for Tech Data

Broadliner's European business celebrates best bottom line for 12 quarters

Distribution goliath Tech Data, the parent of UK broadliner Computer 2000, has posted its largest profit margin in Europe for twelve quarters.

The US-based firm said it had achieved “measurable improvements” in its European operations, where it generated an operating margin of 0.9 per cent for the three months to 31 January.

Overall net profit for the fiscal fourth quarter hit $50.2m (£25m), compared to $36.1m in the same period last year. The broadliner also posted a 5.9 per cent year-on-year increase in revenues to $6.5bn, although its top line was given an artificial gloss by weakening dollar.

European revenues totalled $3.8bn, or 58 per cent of the total. That represents a 4.2 per cent in dollars but a 7.4 per cent decrease in local currencies on an annual comparison.

The results were posted on the same day that Tech Data announced it has agreed to buy Nordic broadline giant Scribona (CRN Online, 4 March).

Robert Dutkowsky, chief executive of Tech Data, said: “Our market driven sales initiatives and improved inventory management processes, coupled with our efforts to enhance return on capital employed, drove strong results across our Americas and European operations throughout the year.

“While we're pleased with our progress, we know there are opportunities for continued improvement on all fronts. As we proceed into fiscal 2009, the economic environment remains an important consideration, but we remain cautiously optimistic. We will continue to manage our business responsibly while making wise investments for long-term success.”