Ingram Micro worldwide sales drop 25 per cent in Q2

Ingram Micro worldwide sales drop 25 per cent in Q2

Asia-Pacific operations out-perform the rest of the distributor's markets

Ingram Micro’s Asia-Pacific operations have outperformed other markets as the distributor posted a 25 per cent decrease in year-on-year worldwide sales for the second quarter of 2009 ended July 4.

In Q2, the distributor’s Asia-Pacific sales hit $US1.5 billion (23 per cent of total revenues), a decrease of 21 per cent against the second quarter of 2008. The decline was attributed to the economic downturn and weaker regional currencies.

The result, however, was better than Ingram’s other markets with Europe sliding 32 per cent, North America down 22 per cent and Latin America falling 27 per cent.

It is also an improvement on Q1 when the Asia-Pacific region posted a 24 per cent year-on-year decline to $US1.38 billion in sales while the distributor reported a drop of 21-per cent for worldwide results.

In a statement, Ingram Micro CEO, Gregory Spierkel, said the sequential drop in worldwide sales was consistent with historical seasonal norms over the last few years.

"The company's focus on return on invested capital, sustainable profitability and productivity has served us well," Spierkel said in the statement. "We ended the quarter with a record cash balance and the highest second-quarter gross margin in 11 years, providing a solid foundation for the future."

Ingram has $US1.3 billion of cash or cash equivalents on hand and debt of $US335 million, down by $US144 million from the end of 2008.

The distributor recently celebrated 10 years of operating in Australia and 30 years in the US.

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