Candid Remarks From Ingram Micro CEO

In an unusually candid statement by a corporate chieftain, the chief executive of Ingram Micro Inc. said Thursday that severe health problems faced by several of his family members led to the Santa Ana-based company’s beginning a search for his successor.

Jerre Stead, who has led the world’s largest distributor of computer hardware and software since 1996, made the remarks during a conference call with financial analysts while reporting that overall profit for its fiscal third quarter fell 73%, in line with expectations.

Ingram Micro surprised the industry last month when it said that Stead would vacate the chief executive position when a successor was found but that he would continue as chairman afterward. The decision coincided with the company’s warning that its earnings would be lower than expected, saying that it has stumbled amid an industrywide slump that has seen vicious price-cutting erode profits.

“The pressure on my part as the head of the family was intense,” Stead, 56, told analysts during a question-and-answer session on Thursday, noting that his wife, Mary Joy, has gone through six surgeries since a car accident two years ago and that she still faces two more surgeries. One of Stead’s grandsons underwent an operation last week to have a malignant tumor removed. Other members of his family, including his mother, also have fallen ill recently.

Ingram Micro’s profit for the quarter ended Oct. 2 fell to $15.8 million, or 11 cents per share, from $59.8 million, or 40 cents per share during the same period last year. The latest results include a $2.7-million pretax charge from a plan unveiled in March to cut the work force. Revenue rose 18% from $5.7 billion to $6.7 billion.

Ingram shares fell $1.50 to $10 on the NYSE.