Restructuring Charge Leads To 3Q Loss For Ingram Micro

The results compare with a $13.3 million loss, or 9 cents per share, and $5.83 billion in revenue for the year-ago quarter.

The results include a $28.4 million after-tax charge related to a corporate reorganization that is expected to generate $160 million in savings by the first quarter of 2004.

Excluding the charge, the Santa Ana-based distributor posted net income of $20.1 million, or 13 cents per share. Thomson Financial/First Call had projected earnings of 11 cents per share.

"As we emphasized in last month's announcement of our profit enhancement plan, we intend to achieve best-in-class status in every performance measure," said Kent Foster, chairman and CEO of Ingram Micro. "Our third-quarter results bring us closer to this goal. Excluding major program costs, gross margin increased 18 basis points, operating margin increased 32 basis points and operating expenses as a percent of revenues improved 14 basis points compared to last year. Although the economic environment continues to be challenging, we are making sustainable improvements that create significant earnings leverage and capture opportunities for long-term success."

Ingram Micro expects fourth-quarter revenue of between $5.75 billion and $5.9 billion, with net income before charges of between $26 million and $29 million, or 17 cents to 19 cents per share. First Call projects 17 cents per share.

Ingram Micro shares closed at $13.36, down 59 cents per share, or 4 percent.