Ingram Micro’s second quarter results, that saw its net income rise 31 per cent to $US11.5 million, have led the California-headquartered company to express “cautious optimism” for the third quarter.
The company’s worldwide sales for the quarter were $US5.17 billion, down 3.4 per cent from the previous year. North American accounted for half of its sales, Europe another 34 per cent, and Asia Pacific/Latin American made up the remaining 16 per cent.
“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,” chairman and CEO, Kent Foster, said. “Our European region delivered a solid performance despite a sluggish economy, while Asia-Pacific overcame the SARS threat to maintain operating profitability.
“I am cautiously optimistic about the latter half of the year. 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.”
Sales in Latin America and Asia Pacific were $US818 million, up 4.4 per cent from the previous year.
While unable to disclose more specific figures for the distributor’s local performance, managing director of Ingram Micro Australia, Steve Rust, said June was “our largest month ever in Australia.”
While acknowledging that the second quarter of the year was traditionally “the quarter of strongest demand”, Rust echoed Ingram’s CEO in expressing optimism for the rest of the year.
“We’re seeing good sales, but there are no standout areas," he said. "We’ve been selling strongly in systems and software. Our whitebox has been strong and we’ve been selling quite a lot of mobile processors.”
Rust predicted that Ingram’s focus on whitebox builders and small-to-medium business customers would remain.
“I see the opportunities over the rest of the year in all sectors – whitebox, SMB, the low end of the corporate market place," he said. "The large corporates are still very project driven and it’s patchy.”