Ingram hails 'record' second quarter

Distribution giant claims sales have reached record levels for third consecutive quarter, but profit has dropped

Ingram Micro claimed its European business 'turned a corner' last month as the broadliner posted 'record' second quarter results.

Global turnover for the period increase 11 per cent from $7.4bn in 2006 to $8.19bn in Q2 2007. However profit stood at $52.4m for Q2, down on the $53.8m posted in 2006.

However Ingram also recorded a second-quarter charge of $15m which the firm claimed was to 'reserve for estimated losses associated with a Wells Nocie from the US Securities and Exchange Commission (SEC) regarding certain transactions with McAfee during 1998 to 2000'.

Greg Spierkel, chief executive of Ingram, said: "We're pleased with the quarter's record sales and progress on our strategic initiatives. The quarter's performance was led by the Asia-Pacific region, which generated sales growth far exceeding the pace of the local markets. Our other regions are also performing well, managing through the changes and investments we're making in certain markets.

"The global technology market is proving to be resilient and Ingram is poised to take advantage of the opportunities ahead of us," Spierkel said.

William Humes, chief financial officer at Ingram, said: "Every region has made progress towards its strategic initiatives. Europe turned a corner in June, with Germany making significant progress towards recapturing the market share it had before the warehouse management system upgrade."

For the six months ended 30 June, global turnover stood at $16.43bn, up 10 per cent on the $14.99bn posted in 2006. European turnover rocketed 14 per cent for the period to $5.82bn, again due to the strong currency. Profit for the six months also dropped to $89.4m, compared to $115.5m in the first half 2006.

However the distributor seemed confident for the quarter ahead.

"Demand continues to be solid, with July off to a good start in most of our regions," Spierkel said. "Europe is experiencing better demand in most markets, and is poised to take advantage of the improvements made to the management system in Germany. We remain upbeat about our long-term view, confident in our team's ability to find new opportunities and deliver innovative solutions for our customers."