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UPDATE 1-Electronics distributor Ingram Micro hurt by higher costs
April 23, 2014 / 10:26 PM / 4 years ago

UPDATE 1-Electronics distributor Ingram Micro hurt by higher costs

* First-qtr adjusted profit $0.43/share vs est. $0.48

* First-qtr revenue $10.38 bln vs est. $10.4 bln

* Shares fall 8 pct in extended trading (Adds details, shares)

April 23 (Reuters) - Electronic products distributor Ingram Micro Inc posted a weaker-than-expected quarterly profit due to a rise in costs, sending its shares down 8 percent in extended trading.

The company said it expected revenue to grow in low-to-mid single digits in the quarter ending June and the year ending December.

“The company accelerated its strategic investments and ramped up spending ... first quarter earnings per share growth was impacted by the combination of these investments and higher interest and other expenses,” Ingram said.

The company’s costs rose 10 percent to $542.2 million in the first quarter ended March 31.

Net income halved to $24.8 million, or 16 cents per share, in the quarter from $49.8 million, or 32 cents per share, a year earlier.

Excluding items, Ingram earned 43 cents per share.

Revenue rose 1 percent to $10.38 billion.

Analysts on average had expected a profit of 48 cents per share on revenue of $10.40 billion, according to Thomson Reuters I/B/E/S.

Ingram said the benefit of strong sales in Europe and Latin America was offset by lower handset sales in Indonesia.

The company, whose rivals include Avnet Inc and Arrow Electronics Inc, said it faced tougher competition in the United States.

Ingram’s shares closed at $30.27 on the New York Stock Exchange on Wednesday. (Reporting by Soham Chatterjee in Bangalore; Editing by Kirti Pandey)

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