Tech Data warns of difficult Q1

Mixed results for C2000 parent company as currency fluctuations hit revenues and profit
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Tech Data has warned investors that current quarter sales may down by as much as a fifth due to falling demand and the weakening dollar, as it detailed its Q4 results.

Sales were down by five per cent year-on-year, but due to global currency fluctuations, the drop was 11.9 per cent, causing revenues to hit $6.5bn (£4.6bn).

The firm warned in its statement to the markets that the situation was likely to get worse. "In light of the current macro-economic environment and the related decline in IT spending, combined with the strength of the US dollar against certain foreign currencies, first-quarter net sales for the period ending April 30th are anticipated to be down by as much as 20 per cent year-over-year."

Despite that, the firm saw a profit of $123.6m (£87.9m) for the year on revenue of $24.1bn (£17.1bn), as it managed to gain market share from rivals and improve margins in both America and Europe.

In Europe, which houses its Computer 2000 division, profits nearly doubled to $63.6m (£45.2m), but sales remained flat in local currencies and dropped 10.3 per cent in dollars.