Ingram Micro reports quarterly loss

The Associated Press
Wednesday August 01, 2001

LOS ANGELES — Computer products distributor Ingram Micro Inc. reported a $12 million loss in its second quarter because of what it called soft demand throughout the information technology sector. 

The company reported a profit of $33.2 million during the same period last year. 

Losses per share were 8 cents in the quarter ending June 30, compared to earnings of 22 cents in the year-ago period. 

Analysts surveyed by Thomson Financial/First Call had expected losses of 3 cents a share in the most recent quarter. 

“This is a horrendous time in general for technology products and technology markets,” said analyst Shawn Milne of Wit SoundView. “As a whole, (Ingram) revenues are sort of at the high end of the warning range. What is important for investors is what Ingram has to say about the forward outlook.” 

The company had warned in June that it would break even at best during the quarter. At worst, it expected to lose $10 million. 

Net sales for the second quarter dropped 18 percent to $6.02 billion. 

The company, based in Santa Ana, is the largest distributor of computer products in the world and is listed as the 49th largest company in the United States by Fortune magazine. 

In a conference call with analysts, company officials described the financial environment for their industry as the worst ever. They also noted that Ingram had managed to cut $22 million in operating expenses in the second quarter. 

“We are determined to build on our leadership as the top technology distributor in the world,” said chief executive Kent Foster. 

In early June, the company said it planned to slash as many as 1,000 jobs in this country, or 6 percent of its worldwide work force, in hopes of saving as much as $40 million a year. The layoffs will result in closings of a distribution hub in Newark, Calif., and two facilities in Rancho Cucamonga and Santa Ana. 

The earnings announcement was made after markets closed Tuesday. Shares in Ingram Micro closed unchanged at $13.96.