Ingram Micro blames Brazil and Germany for so-so results

Distribution curve

Ingram Micro made sales of $8.85bn in the fourth quarter ended 30 December 2006, an increase of 11 per cent on the $7.96bn the distie made in the same period of 2005.

Profit for the period was $141.7m up from $131.7m in the same period last year. But profits in the quarter made up 1.6 per cent of revenues against 1.66 per cent in the same three months of 2005.

The company highlighted problems in Brazil and Germany. In Brazil, Ingram is setting aside $33m, which it might need to pay extra tax caused by changes to software import laws. In Germany, the company had problems with a warehouse management system which hit profits, but said these were now fixed and it was confident the system would improve efficiency in the next quarter.

North American sales were $3.68bn, 42 per cent of the total, and profits in the period were $64.6m - up from $55.1m a year ago. Europe sold $3.23bn of kit, 36 per cent of the total and up from $3.01bn in 2005. Profits in Europe fell to $49.2m from $57.1m.

Asia-Pacific made sales of $1.5bn, up 20 per cent, and profits of $22.8m compared to $8.9m a year ago.

Latin America contributed $444m in sales, up six per cent, and profits of $11.8m against $10.6m last year.

For the first quarter of 2007 Ingram expects revenues of between $8.10bn and $8.35bn with profits of between $63m and $70m. ®