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US hardware and services wholesaler Ingram Micro (NYSE: IM) posted 13% growth in net sales in Latin America during the third quarter of 2011 to US$420mn, compared to US$371mn in the year-ago period, the company said in a statement.
The region accounted for 5% of the company's total sales.
Ingram Micro's Latin American operating income jumped 76.1% to US$6.2mn in the quarter, compared to US$3.5mn in the year-ago period. The increase over the prior year is attributable to continued strong performances in Mexico and in the company's Miami export operations.
Globally, the company posted Q3 revenues of US$8.90bn, a 5.3% increase compared to US$8.45bn in 3Q10. However, net profits reached US$23.3mn in the quarter, down from US$64.9mn in the year-ago period.
Net income was affected by charges totaling US$28.8mn, including a non-cash valuation allowance of US$24.8mn recorded against the company's deferred tax assets in Brazil, driven by continuing losses generated in that business unit. Also having an effect was a US$4mn after-tax charge related primarily to the termination of the company's interest rate swap associated with the repayment of its term loan in September, which had US$225mn in outstanding principal and was replaced by a more flexible US$750mn revolver.
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