Ingram Micro Reaffirms Fourth-Quarter Guidance in Advance of Investor Conference
December 07 2005 - 9:01AM
PR Newswire (US)
SANTA ANA, Calif., Dec. 7 /PRNewswire-FirstCall/ -- Ingram Micro
Inc. (NYSE:IM), the world's largest technology distributor, today
reaffirmed guidance for the fourth quarter in advance of presenting
at an upcoming investor conference. As previously reported on Oct.
27, 2005, sales are expected to range from $7.75 billion to $8.00
billion, with net income ranging from $78 million to $84 million,
or $0.47 to $0.50 per share based on 167 million shares
outstanding. Net income and earnings guidance exclude any
reorganization costs, special items or integration expenses, which
the company is unable to reasonably estimate on a quarterly basis
at this time. "The fourth quarter is tracking to our expectations,
with a sequential sales increase in-line with historical
seasonality," said Gregory M. Spierkel, chief executive officer,
Ingram Micro Inc. "Our regions are performing well, generating
year-over-year sales growth in local currencies and solid operating
leverage. The translation impact of a softer euro, which has
weakened approximately 10 percent versus a year ago, will have an
effect on year-over- year sales comparisons in U.S. dollars. Our
diversification and growth initiatives are paying off, helping us
mitigate some of the challenges in individual markets." Ingram
Micro's chief financial officer, William D. Humes, will present at
the Lehman Brothers Global Technology Conference on Dec. 8, 2005.
The company plans to report financial results for the fourth
quarter (ending Dec. 31, 2005) in mid-February 2005. Cautionary
Statement for the Purpose of the Safe Harbor Provisions of the
Private Securities Litigation Reform Act of 1995 The matters in
this press release that are forward-looking statements, including
but not limited to statements about future revenues, sales levels,
operating income, margins, integration costs, cost synergies,
operating efficiencies, profitability, market share and rates of
return, are based on current management expectations that involve
certain risks which, if realized, in whole or in part, could cause
such expectations to fail to be achieved and have a material
adverse effect on Ingram Micro's business, financial condition and
results of operations, including, without limitation: (1) intense
competition, regionally and internationally, including competition
from alternative business models, such as manufacturer-to-end-user
selling, which may lead to reduced prices, lower sales or reduced
sales growth, lower gross margins, extended payment terms with
customers, increased capital investment and interest costs, bad
debt risks and product supply shortages; (2) integration of our
acquired businesses and similar transactions involve various risks
and difficulties -- our operations may be adversely impacted by an
acquisition that (i) is not suited for us, (ii) is improperly
executed, or (iii) substantially increases our debt; (3) foreign
exchange rate fluctuations, devaluation of a foreign currency,
adverse governmental controls or actions, political or economic
instability, or disruption of a foreign market, and other related
risks of our international operations may adversely impact our
operations in that country or globally; (4) we may not achieve the
objectives of our process improvement efforts or be able to
adequately adjust our cost structure in a timely fashion to remain
competitive, which may cause our profitability to suffer; (5) our
failure to attract new sources of profitable business from
expansion of products or services or entry into new markets could
negatively impact our future operating results; (6) an interruption
or failure of our information systems or subversion of access or
other system controls may result in a significant loss of business,
assets, or competitive information; (7) significant changes in
supplier terms, such as higher thresholds on sales volume before
distributors may qualify for discounts and/or rebates, the overall
reduction in the amount of incentives available, reduction or
termination of price protection, return levels, or other inventory
management programs, or reductions in payment terms, may adversely
impact our results of operations or financial condition; (8)
termination of a supply or services agreement with a major supplier
or product supply shortages may adversely impact our results of
operations; (9) changes in, or interpretations of, tax rules and
regulations may adversely affect our effective tax rates or we may
be required to pay additional tax assessments; (10) we cannot
predict with certainty, outcome of the SEC and U.S. Attorney's
inquiries; (11) if there is a downturn in economic conditions for
an extended period of time, it will likely have an adverse impact
on our business; (12) we may experience loss of business from one
or more significant customers, and an increased risk of credit loss
as a result of reseller customers' businesses being negatively
impacted by dramatic changes in the information technology products
and services industry as well as intense competition among
resellers -- increased losses, if any, may not be covered by credit
insurance or we may not be able to obtain credit insurance at
reasonable rates or at all; (13) rapid product improvement and
technological change resulting in inventory obsolescence or changes
in demand may result in a decline in value of a portion of our
inventory; (14) future terrorist or military actions could result
in disruption to our operations or loss of assets, in certain
markets or globally; (15) the loss of a key executive officer or
other key employees, or changes affecting the work force such as
government regulations, collective bargaining agreements or the
limited availability of qualified personnel, could disrupt
operations or increase our cost structure; (16) changes in our
credit rating or other market factors may increase our interest
expense or other costs of capital, or capital may not be available
to us on acceptable terms to fund our working capital needs; (17)
our failure to adequately adapt to industry changes and to manage
potential growth and/or contractions could negatively impact our
future operating results; (18) future periodic assessments required
by current or new accounting standards such as those relating to
long-lived assets, goodwill and other intangible assets and
expensing of stock options may result in additional non-cash
charges; (19) seasonal variations in the demand for products and
services, as well as the introduction of new products, may cause
variations in our quarterly results; and (20) the failure of
certain shipping companies to deliver product to us, or from us to
our customers, may adversely impact our results of operations.
Ingram Micro has instituted in the past and continues to institute
changes to its strategies, operations and processes to address
these risk factors and to mitigate their impact on Ingram Micro's
results of operations and financial condition. However, no
assurances can be given that Ingram Micro will be successful in
these efforts. For a further discussion of significant factors to
consider in connection with forward-looking statements concerning
Ingram Micro, reference is made to Exhibit 99.01 of Ingram Micro's
Annual Report on Form 10-K for the year ended January 1, 2005;
other risks or uncertainties may be detailed from time to time in
Ingram Micro's future SEC filings. Ingram Micro disclaims any duty
to update any forward-looking statements. About Ingram Micro Inc.
As a vital link in the technology value chain, Ingram Micro creates
sales and profitability opportunities for vendors and resellers
through unique marketing programs, outsourced logistics services,
technical support, financial services, and product aggregation and
distribution. The company serves 100 countries and is the only
global IT distributor with operations in Asia. Visit
http://www.ingrammicro.com/. (C) 2005 Ingram Micro Inc. All rights
reserved. Ingram Micro and the registered Ingram Micro logo are
trademarks used under license by Ingram Micro Inc. DATASOURCE:
Ingram Micro Inc. CONTACT: Media, Jennifer Baier, +1-714-382-2692,
, or Chris Kelly, +1-714-382-3355, , or Investors, Ria Marie
Carlson, +1-714-382-4400, , or Kay Leyba, +1-714-382-4175, , all of
Ingram Micro Inc. Web site: http://www.ingrammicro.com/
Copyright
Ingram Micro A (NYSE:IM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ingram Micro A (NYSE:IM)
Historical Stock Chart
From Jul 2023 to Jul 2024