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Insight closes year with flat Euro sales, profits strengthen

Alex Scroxton

Insight has reported flat sales from its EMEA business in the final quarter of 2011 with the region contributing $369.4m to the company coffers, up 1% compared to the fourth quarter of 2010, 2% when excluding foreign currency fluctuations.

Net sales of hardware in the region were flat, with software and services edging up 1% and 7% respectively, and gross profit was down 3% to $48.9m after booking increased selling and administrative expenses in the region

Across the business, fourth quarter sales edged up just 2% to $1.4bn (£888m), with North America booking an equally sluggish performance, while Insight's APAC business saw growth of 18% in US dollars, albeit starting from a smaller base.

The strong performance in APAC and a number of tax benefits booked during the quarter boosted net profits by 39% year-on-year to $34.7m, which meant that Insight actually breezed comfortably past its expected EPS targets.

Full year sales at the firm came in at $5.3bn, up 10% and a new annual record, and net profit grew 33% to $100.2m.

"Modest sales growth combined with higher gross margin and strong expense control led to a 13% growth in earnings from operations ion the quarter," reflected president and CEO Ken Lamneck.

"For the full year 2011, our team delivered double digit sales and earnings growth with improved operating margins, reflecting progress towards our long term financial targets."

He continued: "As we head into 2012, we remain confident that consistent execution of our strategic priorities combined with operational discipline will result in increased value for our shareholders."

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