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Ingram Micro sales growth outpaced by profits in Q1 2010

Microscope contributor

Spurred by a stabilising global economy and product refreshes the reseller channel is looking more buoyant than it has done in years, Ingram Micro's chief executive has claimed.

Evidence for his assertions can be found in the broadliner's first quarter results; sales grew 20% to $8.09bn - the highest growth rate since 1999 - and profits went up from $27.5m to $70.3m, reaching pre-recessionary levels.

"This quarter's performance is the result of eighteen months of expense reductions and business improvements throughout the world, the tough decisions we made in the recessionary months are paying off," said Ingram big cheese Greg Spierkel. 

The distributor undertook two rounds of redundancies - one in 2008 and the other last year - but confirmed that it is maintaining a tight control on costs despite rising demand from resellers with Window 7, virtualisation, mobility the demand catalysts.

"Our reseller community at large are as positive as I've seen them in maybe two to three years, there is a certain amount of refresh going on in the market where CIOs or small businesses basically held back in the last two years," he said.

Continued product shortages in printers, networking and data capture/ point of sale kit was also a strong indicator that customer spending was on the up.

Spierkel said it was hard to quantify the exact shortfall in supply but estimated it could have sold "tens of millions" of dollars worth of additional kit if it had had more stock.

"It tells you things are improving in the overall market, in essence many of the major manufacturers have under called the market growth and clearly their ODMs are struggling at points and time to supply everything as uniformly as they would like."

Split by region, North America grew 19% year-on-year to $3.29bn, EMEA was up 18% to $2.6bn, Asia Pacific climbed 28% to $1.7bn and Latin America rose 15% to $370m. 


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