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INGRAM MICRO NET SALES INCREASE 37 PERCENT, EXCEEDING $6.8 BILLION FOR SECOND QUARTER 1999Company delivers $0.35 earnings per share before reorganization costs, ahead of analysts' estimatesSANTA ANA, Calif., July 29, 1999Ingram Micro Inc., the world's largest wholesale provider of technology products and services, today announced its financial results for the second quarter ended July 3, 1999. The company posted record net sales in the second quarter of 1999 of $6.80 billion, growing 37 percent over the prior year's second quarter net sales of $4.96 billion. Net income was $51.7 million, or $0.35 per share, excluding $2.1 million in costs incurred during the period for reorganization efforts outlined in the company's March 11, 1999 announcement. This compares with net income of $55.6 million, or $0.37 per share, for the same quarter in 1998. Net income for this year's second quarter, including the reorganization costs, was $50.3 million, or $0.34 per share. Jerre L. Stead, the chairman and chief executive officer, Ingram Micro Inc. said, "We are proud of the solid progress we made in the second quarter. We achieved strong sales and continued to improve our efficiency. Our operating income improved 20 percent, compared to our first quarter results this year on a similar level of sales. Much of this improvement was accomplished by streamlining our organization and reducing our operating expense level to 3.79 percent of sales." For the first six months of 1999, net sales grew 34 percent reaching $13.53 billion. Net income through the first two quarters of 1999 was $92.6 million or $0.63 per share. Excluding extraordinary gains and reorganization costs, net income for the six-month period was $94.1 million or $0.64 per share. "Ingram Micro is in the midst of a revolution in the technology distribution industry. Major customers are outsourcing their logistics and fulfillment to us, the leader, which improves their service offering and reduces their costs. Vendors also are consolidating with fewer key strategic partners," Stead continued. "We are re-designing our organization to focus on these major new areas of opportunity, creating new business-to-business electronic-commerce capabilities, and leveraging our single, global business system. Our objective is to continue increasing our efficiency and to provide an expanding menu of outsourcing services for our vendors and our customers." In recent months, the company has achieved significant milestones, especially in the expanding outsourcing business. Ingram Micro has a growing roster of resellers, including Software Spectrum, Elcom and, most recently, Unisys, for which it provides a number of outsourcing services. The company also has announced a letter of intent with CompUSA, which is estimated to be worth $10 billion over five years, making it the largest proposed contract to date in the technology-distribution industry. Compaq selected Ingram Micro as a partner in its North American Distributor Alliance Program, in which it consolidated the total number of Compaq distributors from 39 to 4. In addition, Microsoft selected Ingram Micro as its exclusive outsourcing partner to provide logistics and fulfillment for its Retail 2000 program. For more information about Ingram Micro's second-quarter earnings, see the Consolidated Balance Sheet and Statement of Income; you'll need Adobe Acrobat Reader to view these documents. About Ingram Micro Inc.Ingram Micro Inc. (NYSE:IM), headquartered in Santa Ana, Calif., is the world's largest wholesale provider of technology products and services, and is a leader in assembly and integration services with sales of $25.5 billion for the past four reported quarters. The company and its subsidiaries operate in 34 countries and distribute more than 225,000 products to more than 140,000 resellers in 130 countries.Forward-Looking StatementCertain statements in this press release may be forward-looking statements that involve risks and uncertainties. Words such as "anticipates," "intends," "plans," "believes," "seeks," "estimates" and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on current expectations and projections about the technology distribution industry and assumptions made by Ingram Micro's management and are not guarantees of future performance. Therefore, actual events and results may differ materially from those expressed or forecasted in the forward-looking statements due to factors such as those identified in Exhibit 99.01 of Ingram Micro's annual report on Form 10-K for the fiscal year ended Jan. 2, 1999. Other risks or uncertainties may be detailed from time to time in Ingram Micro's future Securities and Exchange Commission filings. Ingram Micro undertakes no obligation to update any forward-looking statements in press releases. Contact Kim Strohm |
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