Ingram Micro's Q2 earnings up at $US61.3m; sales flat at $US8.8bn

Asia Pacific sales reached an all-time second quarter high, driven by strong double-digit growth in China and India.

Technology distributor Ingram Micro Inc.’s second quarter earnings rose to $US61.3m, up 2.6 per cent from the same quarter last year. Its global sales were flat at about $US8.8bn compared to the second quarter of 2011.

For the six months ended June 30, 2012, its net income was $US151.2m, up 30% from in the comparable period last year. Its sales for the first six months stood at $US17.4bn, flat from about $US17.5 billion in the year-ago period.

The company cited negative impact from acquisition-related costs totalling about $US4m; and from charges totalling $US2m due to asset impairments associated with the closure of its operations in Argentina.

Asia Pacific sales were up 4 percent in US dollars, but were much stronger in local currencies, it said in a statement. Sales for the region reached an all-time second quarter high, driven by strong double-digit growth in China and India.

Its sales in Latin America hit an all-time high during the quarter, growing 14 percent, despite a 13 percentage point negative impact from the exchange impact of weaker local currencies.

"We had another solid quarter, with strong sales in many countries, particularly relative to overall IT spending," said Alain Monie, president and CEO, Ingram Micro, said in a statement. "We are executing on our strategic initiatives. We continue to invest organically in the business across all regions to fuel future accelerated growth in higher margin markets and the business is absorbing these investments while still generating solid operating margins.”

Monie added the company is also continuing its M&A strategy, with the recent agreement to buy BrightPoint, a device lifecycle services provider to the mobility industry, for $US840m.

Given the current macroeconomic environment, the company expects sales for the 2012 third quarter to be flat sequentially with the 2012 second quarter and expects gross margins to remain under pressure. It will also incur incremental interest costs of about $US2m in Q3 with the loan related to its BrightPoint acquisition.