Ingram Micro 1Q Sales Up 15 Percent, But Not In U.S.

The company earned $37.6 million on sales of $6.28 billion for the quarter ended April 3. That compared with earnings of $10.1 million on sales of $5.48 billion during the same period last year.

The distributor's earnings of 24 cents per share met Wall Street's consensus estimate.

Strengthening European currencies contributed about 6 percent to the revenue growth, Ingram Micro officials said.

"The operational strength we demonstrated in the fourth quarter continued into the new year," said Kent Foster, chairman and CEO, in a statement. "The benefits of our successful profit-enhancement program, coupled with the year-over-year increase in sales, drove the improvements in our bottom-line results."

Foster said the company's worldwide operating margin was the highest for any first quarter in the past five years, while European sales, operating income and operating margins hit regional first-quarter records.

North American sales of $2.78 billion, about 44 percent of the total, were flat with the year-ago quarter. European sales rose 35 percent to $2.61 billion. Asia/Pacific revenue was up 10 percent to $627 million. Latin American sales were up 5 percent over the year-ago period to $255 million.

Gross margin in the first quarter was 5.44 percent, compared with 5.41 percent in the year-ago quarter. The company said it was turning over inventory every 15 days and was carrying about $1.61 billion, or 25 days, worth of inventory.

The distributor expects revenue in the second fiscal quarter ending July 3 to range between $5.6 billion and $5.8 billion, with net income between $21 million and $25 million, or 13 cents to 16 cents per share. Analysts are expecting second-quarter income of 22 cents per share.

"This guidance reflects sales growth over the prior-year period and current currency exchange rate levels," Foster said in a statement. "It also reflects seasonal patterns sequentially, with European sales increasing at a more moderate double-digit pace after two exceptional quarters of year-over-year revenue growth exceeding 33 percent. The second and third quarters are affected by spring and summer holidays, so they tend to be softer than the first and fourth."

Shares of Ingram Micro closed at $16.08, down 72 cents, or 4 percent, on Thursday.