Tech Data steers clear of Ingram led price war in fiscal Q3


Tech Data steers clear of Ingram led price war in fiscal Q3

Microscope contributor

Tech Data resisted the temptation of an all-out price war with arch rival Ingram Micro to post much improved fiscal third quarter profits.

The battle for market share in Europe was evident in Ingram's most recent set of financials but Tech Data's numbers were relatively unscathed, with sales up 9.2% to $6.16bn (£3.86bn) and income rising by more than 24% to $81m (£50.7m).

Bob Dutkowsky, CEO at Tech Data - which closed off the acquisition on Triade Holding BV in the quarter - lauded the results.

"We capitalised on solid demand for technology products in both the Americas and Europe, and successfully balanced selected market share gains with responsible growth," he said.

Sales in the Americas grew 9.7% to $2.7bn and 8.9% in Europe to $3.46bn including the turnover from five acquisitions that the distributor made on this side of the Atlantic in fiscal 2011.

Gross margin held firm at 5.26% compared to 5.24% a year ago with pricing, freight and inventory management processes contributing to the stability.

Dutkovsky expected "solid demand trends to continue" in the final quarter of Tech's fiscal 2011 and insisted "We will maintain our focus on responsible growth, while closely managing costs and working capital."

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