All About The Monie: Ingram OZ Posts Loss
Distributor Ingram Micro records revenue of $10.9 billion in Q2 however, the giant’s Australian division has filed a loss of $31.2 million for the year ending December 2013.
However, local sales rose to $1.4 billion – up 14%. The losses were blamed on restructuring as it continues to stabilise its Enterprise Resource Planning (ERP) system, according to reports. The company’s losses contracted considerably compared to previous years.
The distributor’s organizational effectiveness programs expected to save between $80 – $100 million, globally per year with the majority of cost savings beginning to occur in H2 2014 and fully realized in 2015, which was also reflected in Ingram’s performance, locally.
Globally, Ingram Micro also recorded net income of $86 million, or $0.54 per share and recorded strong gross margin performance of 5.81%, up 3bps year-over-year.
Ingram continues to benefit from faster growth in higher margin businesses – including its mobility – and disciplined approach to sales, as well as from recent acquisitions, it said in a statement.
The stellar global result comes as Alain Monie, CEO at Ingram Micro was presented with a 2014 Top 100 Executive award by The Channel Company in the Top 25 Most Influential Executive category.
The distributor has a solid balance sheet and flexible structure.