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Tech Data reports “solid start” to fiscal year

Tech Data has announced its financial results for the first quarter ended 30th April, 2019.

The company reported that net sales were $8.4 billion, a decrease of 2% compared to the prior-year quarter.

On a constant currency basis, net sales increased 3%. In Americas, net sales were $3.8 billion, an increase of 5% compared to the prior-year quarter. In Europe, net sales were $4.3 billion, a decrease of 8% compared to the prior-year quarter. And in Asia Pacific, net sales were $0.3 billion, an increase of 15% compared to the prior-year quarter.

“We are pleased to report a solid start to Tech Data’s fiscal year 20. In Q1 we delivered double-digit earnings per share growth, generated positive cash flow and earned an industry-leading return on invested capital – all while making good progress on our strategy and continuing to invest for the future. Our worldwide teams executed well in the quarter, despite market uncertainty,” said Rich Hume, chief executive officer.

“Looking ahead, although IT market growth has slowed somewhat from the year ago levels, demand continues to be solid and we remain positive on the overall IT spending outlook.”

Chuck Dannewitz, executive vice president, chief financial officer, added: “During Q1, we generated $63 million in cash from operations, returned $36 million to our shareholders through share repurchases, and for the trailing twelve month period, earned an adjusted return on invested capital of 14%. In addition, we recently improved our liquidity profile to enhance our financial strength and flexibility – all of which reflect our disciplined approach to optimising our business and commitment to creating shareholder value.”

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