After Ingram Micro, a company that claims to be the largest technology distributor in the world, announced their second quarter results, investors weren’t too pleased. As a result, Ingram Micro shares dropped only 10% on Friday.
Most experts believed that Ingram Micro would post revenue of about $6.67 billion in the second quarter of 2009. Instead, the company’s revenue was $6.58 billion.
The weak economy around the world was the reason Ingram Micro gave for coming up short. Compared to last year, Ingram Micro saw more than a 20% decrease in North American sales. Sales in Europe, Asia and Latin American were all at least 21% lower than last year at this time.
Despite the apparent disappointments, Ingram Micro CEO Gregory Spierkel remains positive.
Said Spierkel: “I continue to be pleased with our performance in this difficult economic environment. Since we first experienced the effects of the downturn early last year, we have focused on operational improvements directly within our control – such as managing working capital and expenses, shedding underperforming operations and enhancing gross margins – which are generating visible results. With many of the improvements behind us, we are now in a position to leverage our strong balance sheet and improved infrastructure to begin driving towards pre-recession operating levels.”
Net income in the second quarter was $25.3 million. Compared to last year’s second quarter net income of $58.9 million, this year’s net income was less than half of 2008.