Mixed Q2 for Ingram MicroWednesday, July 24, 2013
Santa Ana-based Ingram Micro Inc. on Wednesday reported mixed financial results for the second quarter and indicated its longstanding operational troubles in Australia are improving.
The company posted sales of $10.3 billion, up 17% from a year ago and missing Wall Street expectations.
Analysts on average had forecast sales of $10.44 billion.
Sales were buoyed by last year’s acquisitions of Indianapolis-based wholesale distributor BrightPoint Inc. and Aptec Holdings Ltd. in Dubai, which added (Brightpoint added 1.2B, Aptec $90M) to revenue. BrightPoint is one of the largest mobile device distributors in the world and accounted for most of that gain.
Adjusted profits hit $86 million, up 28.3% from a year earlier and beating estimates.
Wall Street has expected an adjusted profit of about $70 million.
Ingram Micro is the biggest distributor of computers, software and other technology products in the world.
Revenue in North America was up 5% to $4.03 billion.
Sales in Latin America region were up 4% to $459.8 million.
Asia Pacific posted second quarter sales of $2.13 billion, up 5% from a year earlier. That was partially offset by improvements in Australia, which grew sales for the second straight quarter and reduced operating losses to less than $3 million.
Australia posted an operating loss of more than $5 million in the first quarter and $9 million in the second quarter a year ago.
Ingram Micro has been on a multiyear campaign to regain profitability and customers in Australia following a major operational glitch more than two years ago. Problems with a new electronic logistics system there first surfaced in early 2011, causing Ingram to miss Wall Street profit targets in the first quarter of the year and hampering earnings since then.
Sales in Europe were down 1% at about $2.43 billion.