Tablets boost Ingram Micro's Q3 coffers

Giant distributor sees overall turnover increase five per cent, but firm concerned over macro-economic conditions in Europe

Ingram Micro saw Q3 turnover increase five per cent as it took advantage of the tablet revolution.

But profit slumped as the firm took a $24.4m (£15.2m) hit against deferred tax assets in Brazil due to continuing losses in that region, and a $4m loan repayment charge.

The distribution behemoth posted sales of $8.9bn for the quarter ended 1 October, compared with $8.45bn posted in Q3 last year. Net profit was $23.3m, compared with $65m in 2010.

Greg Spierkel, chief executive of Ingram Micro, said: "Overall demand in our key customer segment serving the SMB market remained relatively stable in most parts of the world during Q3.

"We experienced healthy revenue growth supported by our Americas regions hitting multi-year revenue highs for a third quarter and solid contributions from other major countries such as China, India, Germany and France. During the quarter, we took advantage of strong demand for tablet and mobility products, which helped drive revenues in line with our expectations.

"While this developing product segment is strategically very important, initial gross margins are lower than company averages, which was a factor influencing results this quarter," he said.

But he warned that the macroeconomic conditions in EMEA were taking their toll.

"In Europe the macroeconomic environment had an impact on demand in many countries, particularly in consumer-related segments.

"We have been proactive in responding to these challenges as illustrated by our operating expenses hitting a 10-year low as a percentage of revenue for a third quarter, and we will continue to take active measures to ensure our cost structure reflects our expectations across our operations," he added.