Ingram Micro worldwide sales drop 19 per cent in Q4 FY15 on year-to-year comparison
- 26 February, 2016 08:23
Alain Monié - CEO, Ingram Micro
Worldwide fourth quarter sales were
Interestingly, Asia-Pacific (which includes Australia) net sales for the 52 weeks ending January 2, 2016, were $US10.066 billion up fractionally on the 53 weeks ending January 2, 2015 which came in at $US9.991 billion. It was the only region to record an increase.
Yearly net sales worldwide for these comparative periods were $US43.02 billion down $US3.47bn on the 2015 figure of $US46.49bn (which is a 53-week figure).
This follows it sale last week for $US 6 billion to Tianjin Tianhai Investment Company and this week's announcement that president and COO, Paul Read, will step down.
However, Ingram Micro CEO, Alain Monié, put an upbeat spin on the situation in the company's earnings statement.
"We had a solid close to a strong year of execution, and we are pleased with the progress we are making against our strategic initiatives," Monié said.
"We are excited about our pending transaction to join
"Upon the closing of the transaction announced last week, we expect to have the ability to accelerate our investments, both organically and through M&A, to enhance and add to our capabilities in high value IT solutions, mobility lifecycle services, commerce and fulfillment solutions and Cloud, while also continuing to extend our geographic reach."
Fourth quarter results of operations
Cash flow from operations for the 2015 fourth quarter was
2015 fourth quarter non-GAAP operating margin was 2.11 per cent, up from 1.77 per cent last year. 2015 fourth quarter non-GAAP operating income of
2015 fourth quarter non-GAAP earnings were
Key 2015 fourth quarter business highlights:
North America revenue was$US4.7 billion with non-GAAP operating margin of 2.62 percent and GAAP operating margin of 2.14 percent.Europe revenue was$US3.4 billion with non-GAAP operating margin of 1.58 per cent and GAAP operating margin of 1.33 per cent.Asia-Pacific revenue was$2.5 billion with non-GAAP operating margin of 2.20 percent and GAAP operating margin of 2.01 per cent.Latin America revenue was$US0.8 billion with non-GAAP operating margin of 2.58 per cent and GAAP operating margin of 2.36 per cent.- Return on invested capital for the 2015 full year was 10.7 per cent on a non-GAAP basis, nearly 300 basis points above the company weighted average cost of capital. Return on invested capital on a GAAP basis was 6.9 per cent.
- During the quarter,
Ingram Micro added to its expertise and capabilities across its key strategic initiatives, closing the following acquisitions:- Commerce and fulfillment solutions provider,
DocData , one of the leading European providers of order fulfillment, returns logistics and online payment services; Sao Paulo, Brazil -based, Grupo AÇÃO, one ofLatin America's leading providers of critical value-add IT solutions with a portfolio of higher value products, including those from strategic vendors such asIBM ,Oracle ,Red Hat ,EMC andVMware , and solutions offerings including integration services, sales support and financial services; and- Cloud-focused Parallels Odin Service Automation platform.
- Commerce and fulfillment solutions provider,
Ingram Micro repurchased 1.7 million shares during the 2015 fourth quarter for a total cost of$US53 million .Ingram Micro's US operations raised nearly$700,000 for local charities resulting from fund-raising events inNew York andCalifornia .
As previously announced, Ingram Micro has suspended its quarterly dividend payment and its share repurchase program prior to the closing of the company's pending acquisition by