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LOS ANGELES, April 24 (Reuters) - Ingram Micro Inc IM.N, the world’s largest computer products distributor, posted a higher quarterly profit on Thursday but said it saw softness in some regions and was restructuring its Europe, Middle East and Africa operations.
Shares of Ingram Micro fell 2 percent in extended trading to $16.20 from a $16.56 close in regular trading on the New York Stock Exchange.
Ingram Micro said higher revenues and the positive impact of stronger foreign currency translations, helped boost first-quarter results from the year-ago quarter, which included a charge for commercial taxes on software imports in Brazil.
Ingram Micro said softness in Europe and North America was exerting pressure on operations in those regions.
“We are planning a restructuring in our Europe, Middle East and Africa (EMEA) operations, primarily in the regional headquarters, and made targeted reductions of office-based positions in North America earlier this month,” Chief Executive Greg Spierkel said in a statement.
“We’re pleased with the performance of our Asia-Pacific and Latin America regions, both of which grew at double-digit rates with good operating leverage,” said Spierkel.
First-quarter net income rose to $64.1 million, or 37 cents per share, from $37 million, or 21 cents per share, a year ago. The year-ago figures included the tax charge of $33.8 million, or 19 cents a share. Revenues rose 4 percent to $8.58 billion.
Ingram Micro said the restructuring should yield annual savings of about $18 million to $24 million beginning in the second and third quarters of 2008.
Costs related to the restructuring would be about $11 million to $13 million, with about $2 million to $4 million occurring in the second quarter and the balance being incurred in the third quarter.
Ingram forecast second quarter revenues to range from $8.50 billion to $8.75 billion, with net income seen in the range of $59 million to $64 million, or 34 cents to 37 cents per share, not including the costs related to expense-reduction plans in North America and EMEA.
Analysts on average had forecast second quarter earnings of about 37 cents a share, according to Reuters. (Reporting by Sue Zeidler; Editing by Tim Dobbyn)