Weak European economy hits Ingram Micro


Weak European economy hits Ingram Micro

Simon Quicke

European economic problems and weak trading in Australia prompted a cut in earnings from Ingram Micro despite the distributor raising its sales projections.

The distributor joins a growing list of tech firms that have cited the ongoing fragility in the Eurozone as one of the reasons why growth has been impacted and it has also seen disruption from the transition to a new enterprise system in Australia.

But the channel player has moved to manage expectations in the market announcing that for the quarter ending 1 October it now expects to deliver 13 to 15 cents a share in earnings. Some in the market had been expecting closer to the 40 cent mark. On the sales front the firm revised its expectations up from $8.54bn it forecast in July to around $8.9bn.

"Demand in our key customer segment, which serves small and medium businesses, remained relatively solid in most parts of the world," said Ingram chief executive Greg Spierkel.

"Most areas of our business are performing well, outside of the recovery efforts in Australia and the effects of the European economy," he added.

Join the conversation Comment



    Contribute to the conversation

    All fields are required. Comments will appear at the bottom of the article.