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Tech Data reports overall business growth in Q2 despite European sales decline

Tech Data has released its financial results for the second quarter ended 31st July, 2019.

The results show that net sales were $9.1 billion, an increase of 2% compared to the prior-year quarter. On a constant currency basis, net sales increased 5%.

“We are pleased to report that Tech Data delivered an outstanding second quarter performance marked by
broad-based improvement across our geographies. A stable demand environment, combined with strong
execution by our teams, resulted in a number of key achievements, including: solid sales growth in constant
currency, double-digit growth in operating income and earnings per share, positive cash flow, and an industryleading return on invested capital,” said Rich Hume, chief executive officer.

“We achieved all of this while continuing to advance our strategy, invest for the future and return cash to our shareholders in the form of share repurchases. The Board’s authorisation of an additional $200 million share repurchase reflects our continued confidence in our business and commitment to creating value for our shareholders.”

However, the tech distributor reported a decline in European sales, which sat at $4.4 billion, a decrease of 2% compared to the prior-year quarter.

This is the third consecutive quarter of reporting European sales declines for Tech Data’s, which saw an 8% decrease in Q1.

“Year to date, we generated $103 million in cash from operations, returned $118 million to our shareholders
through share repurchases, and for the trailing twelve month period earned an adjusted return on invested
capital of 15 percent,” said Chuck Dannewitz, executive vice president, chief financial officer.

“We also took steps to optimise our liquidity and financial profile, as we continue to rigorously review our capital structure to enhance shareholder value.”

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