Ingram Posts Threefold Rise in Quarterly Profit

Ingram Micro Inc., the world’s biggest distributor of computers and gadgets, reported a threefold increase in first-quarter profit on higher revenue but warned that second-quarter results would be hurt by weakening European currencies.

The Santa Ana company posted net income of $37.6 million, or 24 cents a share, in the period ended April 3, thanks to cost-cutting efforts and increased sales in Europe. That’s up from $10.1 million, or 7 cents a share, a year earlier. Sales grew 14.5% to $6.3 billion.

The results were in line with what analysts expected, according to Thomson First Call.

“Europe was our star performer,” said Ingram Chief Executive Kent B. Foster.

Sales in Europe, which contributed 42% of the firm’s overall revenue, grew 35% to $2.6 billion. More than half of the gain came from a favorable exchange rate from strong European currencies. Sales in the U.S., which accounts for 44% of Ingram’s revenue, were flat at $2.8 billion.

Executives cautioned that European currencies were likely to weaken this summer, which would hurt sales and profit. Ingram reduced its second-period sales forecast to a range of $5.6 billion to $5.8 billion. Analysts on average had expected $6.1 billion, according to Thomson First Call.

Ingram also said net income would fall to $21 million to $25 million, or 13 to 16 cents a share. Analysts, who said the guidance was “disappointing,” had expected net income of $36 million, or 22 cents a share.

“We’re starting to see demand for [information technology] products emerge,” Foster said.

Ingram’s shares fell 72 cents to $16.08 on the New York Stock Exchange in regular trading but rose to $16.28 after hours.