NEW YORK and SANTA ANA, Calif., Nov.
15, 2011 /PRNewswire/ -- Ingram Micro Inc. (NYSE: IM), the
world's largest technology distributor and supply-chain services
provider, will emphasize its plans for profitable growth and
greater value for shareholders at its investor and analyst day
event, being held today in New
York at the Grand Hyatt Hotel from 1:30 to 5 p.m. EST.
Senior management will outline how the company expects to
further optimize its traditional distribution business, enhance its
position in existing higher-margin specialty markets, and develop
capabilities in emerging areas such as cloud services.
Presentations will be made by Gregory Spierkel, Chief
Executive Officer; William Humes,
Chief Financial Officer; Mario
Leone, Chief Information Officer; and Keith Bradley, President of Ingram Micro North
America.
"Our strategy is designed to drive competitive advantage,
sustainable profitable growth and returns on invested capital
through the right combination of operational improvements and
expansion initiatives," said Spierkel. "We are determined to
significantly improve our financial performance and shareholder
returns."
Company executives plan to communicate the following operational
and financial goals expected to be achieved by 2015, including:
- Completing the implementation of its new enterprise resource
planning system, with investments in the initiative peaking in
2011. Once fully implemented, the new system will provide a
consistent global platform for best-practice and process sharing,
real-time data for quicker decision-making, improved customer
service and greater automation and efficiencies.
- Increasing revenues in line with overall technology spending,
which is expected to grow at a compound annual growth rate of 4.5%
to 6.5% through 2015.
- Achieving a full-year gross margin of 5.4% to 5.6%.
- Growing operating income faster than the rate of sales,
delivering a full-year operating margin ranging from 155 to 175
basis points.
- Generating earnings per share of $2.60
to $3.10
- Consistently driving return on invested capital to 300 to 500
basis points above weighted average cost of capital.
- Strategically deploying capital for internal investments and
acquisitions while returning capital to shareholders.
For the first time, the company will disclose revenue levels and
growth targets for its specialty areas:
- Advanced (Enterprise) Computing – Sales of more than
$10 billion in 2011, reaching more
than $14 billion in 2015. This
area includes products currently reflected in the traditional
distribution business, such as enterprise storage and software,
servers and networking.
- Data Capture / Point of Sale – 2011 revenues are expected to
surpass $600 million, growing to
$900 million for the full-year
2015.
- Mobility Products and Services – Revenues of more than
$600 million in 2011, growing to
$1.7 billion in 2015.
- Ingram Micro Logistics – Expected 2011 fee volume (reflected as
gross profit on the income statement) of more than $120 million, surpassing $190 million for the full-year 2015.
- Cloud Computing – Launched earlier this year, 2015 revenues are
expected to surpass $200 million by
2015.
"The specialty areas present exciting opportunities for growth
and profitability," said Spierkel. "Greater traction in these
areas, coupled with the benefits of our system enhancements and
ongoing operational improvements, leads to significant upside in
our business."
Attendance to this event is by invitation only. A live,
listen-only audio webcast of the event will be available through a
link on the company's website at www.ingrammicro.com (Investor
Relations section), along with accompanying presentation slides.
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,
technical and financial support, managed and cloud-based services,
and product aggregation and distribution. The company is the only
global broad-based IT distributor, serving more than 150 countries
on six continents with the world's most comprehensive portfolio of
IT products and services. Visit www.ingrammicro.com.
© 2011 Ingram Micro Inc. All rights reserved. Ingram
Micro and the registered Ingram Micro logo are trademarks used
under license by Ingram Micro Inc.
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 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) we are dependent on a variety of
information systems, which, if not properly functioning, or
unavailable, could adversely disrupt our business and harm our
reputation and earnings; (2) changes in macro-economic conditions
may negatively impact a number of risk factors which, individually
or in the aggregate, could adversely affect our results of
operations, financial condition and cash flows; (3) we continually
experience intense competition across all markets for our products
and services; (4) we operate a global business that exposes us to
risks associated with conducting business in multiple
jurisdictions; (5) our failure to adequately adapt to IT industry
changes could negatively impact our future operating results; (6)
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; (7) we have made and expect to
continue to make investments in new business strategies and
initiatives, including acquisitions, which could disrupt our
business and have an adverse effect on our operating results; (8)
substantial defaults by our customers or the loss of significant
customers could have a negative impact on our business, results of
operations, financial condition or liquidity; (9) changes in, or
interpretations of, tax rules and regulations, changes in mix of
our business amongst different tax jurisdictions, and deterioration
of the performance of our business may adversely affect our
effective income tax rates or operating margins and we may be
required to pay additional taxes and/or tax assessments, as well as
record valuation allowances relating to our deferred tax assets;
(10) changes in our credit rating or other market factors such as
adverse capital and credit market conditions or reductions in cash
flow from operations may affect our ability to meet liquidity
needs, reduce access to capital, and/or increase our costs of
borrowing; (11) failure to retain and recruit key personnel would
harm our ability to meet key objectives; (12) we cannot predict
with certainty what loss we might incur as a result of litigation
matters and contingencies that we may be involved with from time to
time; (13) we may incur material litigation, regulatory or
operational costs or expenses, and may be frustrated in our
marketing efforts, as a result of new environmental regulations or
private intellectual property enforcement disputes; (14) we face a
variety of risks in our reliance on third-party service companies,
including shipping companies for the delivery of our products and
outsourcing arrangements; (15) changes in accounting rules could
adversely affect our future operating results; and (16) our
quarterly results have fluctuated significantly.
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 fiscal year ended
January 1, 2011; other risks or
uncertainties may be detailed from time to time in Ingram Micro's
future SEC filings.
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SOURCE Ingram Micro Inc.