IM Ingram Micro Inc. (delisted)

SANTA ANA, Calif. and BRUSSELS, March 20 /PRNewswire-FirstCall/ -- Ingram Micro Inc. (NYSE:IM), the world's largest wholesale provider of technology products and supply chain management services, today announced its intentions to restructure operations in the Nordic countries of the EMEA (Europe, Middle East and Africa) region to position the company for greater profitability. Through the restructuring program, Ingram Micro will focus its broad-based distribution operations on the Swedish market while further developing its data capture/point-of-sale (DC/POS) business in four Nordic countries. The program includes the following actions: -- The sale of Ingram Micro's broad-based distribution business in Denmark. The company recently entered into a definitive agreement to sell the assets of its Danish operations to Actebis Group, a technology distributor based in Germany. The transaction is subject to regulatory approvals and is expected to be completed early in the third quarter of 2009. Terms of the sale were not disclosed. -- The intended closure of the company's broad-based distribution businesses in Finland and Norway, expected to be completed by the end of the second quarter of 2009 following regulatory approvals. Ingram Micro's data capture/point-of-sale (DC/POS) business, currently the second-largest European distributor in this category, is not affected by the intended restructuring and will continue to have a presence throughout the Nordic area. According to Greg Spierkel, chief executive officer, Ingram Micro Inc., estimated costs and benefits of these actions were incorporated into the worldwide restructuring plan disclosed in February. Annualized savings generated by the worldwide restructuring plan are expected to range from $100 million to $120 million, reaching a full run-rate at the end of 2009, with total related costs estimated at $45 to $65 million. "We have been concentrating on enhancing profitability in Europe for several quarters," said Spierkel, "and the restructuring of our Nordic operations is part of this plan. While our operations in Denmark, Finland and Norway are small, generating approximately $450 million in aggregated revenues for the 2008 fiscal year, they are not meeting our requirements for profitability and return on invested capital. By re-positioning these operations, we are able to build a profitable, stand-alone broad-based business in Sweden, where Ingram Micro enjoys both a solid market position and good growth prospects. We remain committed to serving our partners fairly and responsibly during this time of transition." 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 economic conditions, capital resources, cost reduction actions, revenues, operating income, margins, expenses, integration costs, operating efficiencies, profitability, market share and rates of return, are based on current management expectations. Certain risks may cause such expectations to not be achieved and, in turn, may have a material adverse effect on Ingram Micro's business, financial condition and results of operations. Ingram Micro disclaims any duty to update any forward-looking statements. Important risk factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, without limitation: (1) difficult conditions in the global economy in general have affected our business and results of operations and these conditions are not expected to improve in the near future and may worsen; (2) changes in our credit rating or other market factors such as continued adverse capital and credit market conditions may significantly affect our ability to meet liquidity needs through reduced access to capital, or it may increase our cost of borrowing; (3) our failure to adequately adapt to economic and industry changes and to manage prolonged contractions could negatively impact our future operating results; (4) if our business does not perform well, we may be required to recognize further impairments of our intangible or other long-lived assets or establish a valuation allowance against our deferred income tax assets, which could adversely affect our results of operations or financial condition; (5) we continually experience intense competition across all markets for our products and services, which may intensity in a more difficult global economy; (6) we operate a global business that exposes us to risks associated with international activities; (7) we have made and expect to continue to make investments in new business strategies and initiatives, including acquisitions and continued enhancements to information systems, process and procedures and infrastructure on a global basis, which could disrupt our business and have an adverse effect on our operating results; (8) we are dependent on a variety of information systems and a failure of these systems could disrupt our business and harm our reputation and net sales; (9) terminations of a supply or services agreement or a significant change in supplier terms or conditions of sale could negatively affect our operating margins, revenue or the level of capital required to fund our operations; (10) changes in, or interpretations of, tax rules and regulations may adversely affect our effective tax rates or operating margins and we may be required to pay additional tax assessments; (11) we cannot predict with certainty what loss we might incur as a result of the SEC inquiry we have received as well as other litigation matters and contingencies that we may be involved with from time to time; (12) we may incur material litigation, regulatory or operating costs or expenses, and may be frustrated in our marketing efforts, as a result of new environmental regulations or private intellectual property enforcement disputes; (13) future terrorist or military actions could result in disruption to our operations or loss of assets, in certain markets or globally; (14) 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; (15) we face a variety of risks with outsourcing arrangements; (16) changes in accounting rules could adversely affect our future operating results; (17) our quarterly results have fluctuated significantly; and (18) we are dependent on third-party shipping companies for the delivery of our products. 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 Item 1A Risk Factors of Ingram Micro's Annual Report on Form 10-K for the year ended January 3, 2009; 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 managed services, unique marketing programs, outsourced logistics, technical and financial support, and product aggregation and distribution. The company serves customers in approximately 150 countries and is the only global broad-based technology distributor with operations in Asia. Visit http://www.ingrammicro.com/. 2009 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: Ria Marie Carlson of Ingram Micro Corporate Headquarters, +1-714-382-4400, Web Site: http://www.ingrammicro.com/

Copyright