By Alex Scroxton21 August 2008
Second quarter results released by Computer 2000 parent Tech
Data have painted a positive picture of the business’ performance over the
three months to 31 July, in spite of a worsening macro-economic climate.
Overall, worldwide sales were up 9.8% year-on-year to $6.16bn.
The distributor also banked GAAP net income of $23.7m, up from $7.2m this time
last year. The figures included consulting and integration costs relating to
the acquisition back in May of troubled pan-Nordic distributor Scribona, as
well as charges relating to Tech Data’s exit from the UAE and Israel.
In spite of these costs in Tech Data’s EMEA theatre, the
region performed well, making sales of $3.4bn, or 55% of the firm’s worldwide
total.
CEO Robert Dutkowsky admitted that softer demand and growing
competition in the Americas
was a concern, but said that in Europe, Tech
Data “gained a stronger foothold and better leveraged our infrastructure”.
He added: “We are taking measured steps to address our
margin performance worldwide, while also maintaining certain strategic
investments.”
Dutkowsky reaffirmed Tech Data’s commitment to implementing
freight and handling costs across the organisation in a bid to mitigate
increased transport costs.
Globally, the firm expects to make sales of about $6.4bn
during Q3.
