Ingram Micro 'Cautiously Optimistic' After 2Q Income Increases

The Santa Ana, Calif.-based distributor reported revenue of $5.17 billion, down 3 percent from $5.35 billion for the same period last year.

"I am cautiously optimistic about the latter half of the year," said Kent Foster, chairman and CEO, in a statement. "Our outlook reflects a steady, but not robust, demand environment. We see signs of stability in North America but economic conditions remain soft in Europe and Latin America. Asia is expected to grow at a controlled rate, as planned. We have proven our ability to execute consistently, despite challenging conditions, while our profit-enhancement program has positioned us for the future. We are a stronger, more nimble company today than we have ever been, and we intend to extend our leadership position throughout the world."

The results are based on generally-accepted accounting principles (GAAP) according to Ingram Micro.

Sales in North America generated 50 percent of sales, while Europe generated 34 percent and Latin America and Asia-Pacific combined for 16 percent.

Our resolve to deliver value and profitability was demonstrated throughout the organization," Foster said in the statement. "The quarter began with soft North American demand, as we described three months ago, but we maintained our intelligent pricing strategy and reinforced our value to our business partners. Our European region delivered a solid performance despite a sluggish economy, while Asia-Pacific overcame the SARS threat to maintain operating profitability. As a result, sales and income exceeded the top end of the range of guidance issued at the end of April."

For the third quarter, Ingram Micro expects revenue between $5.18 billion and $5.35 billion with net income, before any charges, between $21 million and $25 million, 14 cents and 17 cents per diluted share.

The company's major-program costs and GAAP earnings in cannot be reasonably estimated, according to the distributor.