Ingram: Q3 Revenue Light; Profits Beat; No More Guidance
Ingram Micro (IM) posted third-quarter revenue of $8.28 billion, short of the Street consensus of $8.44 billion. Profits of 27 cents a share, however, beat the Street by four cents. The company said that it suffered “softening demand” in its three largest regions, and decided to “walk away from unprofitable business.”
Ingram, the world’s largest technology distributor, said it has decided to stop providing specific quarterly financial guidance. It did say, though, that the company believes the softer global economy will continue well into next year, “which will dampen the demand for technology products and services.”
Ingram said “softening demand due to global macroeconomic forces is expected to have a negative impact on sales growth into 2009.” The company said it has exited under-performing businesses, including some retail accounts in the U.S., China and Europe.