Ingram Micro's Latin American sales grow 10% to US$407mn in Q1

Monday, May 2, 2011

US hardware and services wholesaler Ingram Micro's (NYSE: IM) sales in Latin America grew 10% year-on-year to US$407mn during the first quarter of 2011, ended April 2, according to financial results reported by the company.

Latin America represented 5% of Ingram Micro's total sales. Relatively stronger regional currencies had a positive impact of some five percentage points on year-over-year growth.

Globally, Ingram Micro's net profit in 1Q11 was US$56.3mn, down from US$70.3mn during 1Q10. The company attributed the decline to difficulties transitioning to a new enterprise system in Australia.

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Ingram Micro's sales were US$8.72bn, up 7.8% from US$8.1bn during 1Q10. North America had the best performance, generating its highest Q1 sales in 10 years, while Latin America returned to pre-recession levels.

Without providing specific figures, Ingram Micro said it expects sales to grow on a year-over-year basis for Q2, while sequentially sales should range from a modest single-digit decline to staying flat.

The company expects remaining transitional issues in Australia to have an impact on the quarter, while the competitive environment in Asia-Pacific and softer retail demand in Europe are expected to affect gross margins.

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