Ingram reels in higher earnings

Ingram Micro has beaten revenue and earnings estimates for the fourth quarter ended 1 January 2005, due to favourable currency conversion rates, sales and operating efficiencies in its Asia-Pacific operations.

The distributor said in the US that its earnings for the quarter jumped 70.7 percent to US$79.2 million or 48 US cents per share, up from US$46.4 million or 30 US cents a share in the year-ago quarter.

Sales rose 10.2 percent to US$7.45 billion, compared with US$6.76 billion in the same period last year. Analysts polled by Thomson First Call had expected earnings of 35 US cents per share on US$7.14 billion in sales.

The results included a US$14.2 million gain for eight US cents a share because of favourable currency exchange rates during the November 2004 acquisition of Asia-Pacific rival Tech Pacific.

"I congratulate our associates in every region for a strong finish to a historic year," Ingram chief executive Kent Foster said in a statement.

"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.

"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."

In North America, Ingram Micro's quarterly sales increased 2 percent to US$3.14 billion.

For the 2004 fiscal year, Ingram Micro's earnings rose 47.3 percent to US$219.9 million or US$1.38 per share, compared with US$149.2 million or 98 US cents a share, the previous year.

Revenue was US$25.46 billion, compared with US$22.61 billion in the prior fiscal year.

North American revenue was US$11.78 billion, a seven percent increase.

Ingram Micro told anaysts it expects first-quarter revenue in the US$7 billion to US$7.2 billion range, and net income of US$47 million to US$50 million for 28 US cents to 30 US cents per share.

"Demand continues to be generally solid throughout the world, with some pockets of increasing competition and economic softness in specific markets," said Foster in a statement.

"Driving the year-over-year sales growth of 12 to 15 percent [in the first fiscal quarter of 2005] are additional revenues from the former Tech Pacific business, coupled with organic growth in our existing operations."