Improving demand for computer products in North America and Europe helped Santa Ana-based Ingram Micro Inc. post sales and profit gains in the fourth quarter, the company said Thursday.
Ingram, the world’s largest distributor of computer products, reported a 10% gain in sales to $7.5 billion, versus a year earlier. About $400 million in sales come from the company’s acquisition of Australian distributor Tech Pacific, which closed last year.
The company said its operating profit jumped 34% in the quarter to $108.7 million, compared to a year ago.
“In the fourth quarter, we posted the highest operating margins in four years and exceeded our guidance range for sales and net income, while closing the largest acquisition in the company’s history,” said Kent Foster, Ingram’s chairman and chief executive. “We are particularly pleased to deliver sales growth over last year’s 14-week fourth quarter, which was extraordinarily strong due to explosive European demand and extra selling days.”
Foster said Ingram’s outlook is good, noting strong demand with softness in some markets.
“We expect to maintain or enhance market share through strategic initiatives to spur both sales and income, while expanding our reach into new technologies and markets,” Foster said.
For the first quarter, Ingram expects sales of $7 billion to $7.2 billion, with net income $47 million to $50 million. Analysts expect the company to post sales of $7 billion and income of $47 million, according to Thomson Financial.
