Distributor posts 57 per cent drop in profits for Q1

Ingram Micro profits fall

Ingram Micro saw sales fall by 21 per cent and profits more than halved during the first quarter of 2009.

The company generated $27.5 million in profit for the quarter, compared to $64.1 million for the same period in 2008.

Despite this decline, the distributor insists that it is in a strong position to withstand any further blows to its margin.

“With the recession now affecting all regions, we do not expect a pick-up in sales for several more months, perhaps for the remainder of the year,” said Ingram Micro’s chief executive officer Greg Spierkel. “However we don’t feel the market getting worse at this stage and expect Q2 sales to follow a historical seasonal pattern.

“We should see additional benefits of our expense-reduction programs. The results of last year’s program are now fully realized, generating annualized benefits of more than $20 million. I’m confident that the actions we’re taking today will make us stronger and more profitable when demand returns.”

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