Ingram closes robust year with solid Q4 figures

Broadliner posts top- and bottom-line growth with all regions pulling their weight

Broadliner Ingram Micro capped a successful year with a fine closing quarter, with sales and profits on the up in Q4 2010.

The firm's revenue for the three months to 1 January grew 12 per cent annually to $9.88bn (£6.16bn), with net income up 7.5 per cent to $115m. For the full year, turnover rose 17 per cent year on year to $34.59bn, with net profits growing 57.4 per cent year on year to $318.1m.

Q4 sales in the EMEA region spiked 10 per cent to $3.35bn, more than a third of total revenue. However, the weakness of European currencies nullified eight points of this growth. Asia-Pacific was the star performer, with revenue up 15 per cent to $1.98bn and strong currencies in the territory adding another five points of growth.

North America contributed 41 per cent of total revenue, with sales in the region up 13 per cent on the corresponding period last year to $4.05bn. Latin American turnover rose 11 per cent to $496m.

EMEA, North America and Asia-Pacific chipped in operational income of 1.78, 1.74 and 1.44 per cent of total sales, respectively. Latin America provided the best margins, with operating income reaching 3.54 per cent of revenue.

Ingram chief executive Greg Spierkel was cautiously optimistic in his outlook for Q1 2011.

"For the first quarter, we expect sales to follow a historical seasonal pattern, with a normal sequential decline and modest year-over-year growth," he said. "Gross margins are also expected to decline sequentially due to seasonality and competitive dynamics in certain markets.

"While we will continue to tightly manage expenses – they may fluctuate as we make strategic investments, increasing at approximately half the rate of sales for the full year."