Ingram CEO’s Family Health Crises

In an unusually candid statement by a corporate chieftain, the chief executive of Santa Ana-based Ingram Micro Inc. said Thursday that severe health issues faced by several of his family members caused the company to begin searching 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 announcing that profits for the quarter fell 71%, in line with expectations.

Ingram Micro surprised the industry last month by announcing that Stead will vacate the chief executive position when a replacement is found but that he will continue as chairman afterward.

The decision coincided with the company warning that its earnings would be lower than expected, saying that it has stumbled during an industrywide slump that has seen vicious price-cutting erode profits.

The simultaneous announcements left some mystified, and Stead attempted to shed light on his decision.

“The pressure on my part as the head of the family was intense,” Stead, 56, told analysts during a question-and-answer session, noting that his wife, Mary Joy, has gone through six surgeries since a car accident two years ago and has two more to go.

One of Stead’s grandsons underwent an operation last week to have a cancerous tumor removed. Other members of his family, including his mother, also have fallen ill recently.

Stead said the search was announced early in view of what is perceived to be a shortage of good candidates and that he continued to be very much in control of the company.

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 earnings included $2.7 million in charges from a plan unveiled in March to cut the work force.

Revenue rose 18% from $5.7 billion, to $6.7 billion.

The earnings report was issued after the market closed. Ingram shares fell $1 to $10.50 in New York Stock Exchange trading on Thursday. The stock has tumbled 72% this year, compared with a 53% decline for No. 2 distributor Tech Data Corp.

“They’ve had some management turmoil,” said Walter Winnitzki, an analyst at Hambrecht & Quist, who rates Ingram shares “market perform.” “They’ve taken their eye off the nitty-gritty issues of their business.”

Bloomberg News contributed to this story.