IT distributor Tech Data has reported a halving in its profits despite its UK subsidiary, Computer 2000 showing bottom line growth of 51.9 per cent.
For the third quarter, Tech Data revenues grew by 3.6 per cent but operating profit fell by 55 per cent, including a foreign currency exchange loss of $23.5 million.
"The challenges of the macro-economic environment and accompanying competitive conditions tested Tech Data on many fronts during the third quarter," said Tech Data CEO Bob Dutkowsky. "The unprecedented volatility in certain foreign currencies dampened our bottom line results."
Recent fluctuations in the currency markets have seen the value of the pound drop by 25 per cent against the US Dollar and as these changes are ongoing, Tech Data has decided that it will not continue providing net sales or tax rate guidance.