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Ingram Micro worldwide sales drop 19 per cent in Q4 FY15 on year-to-year comparison

Mike Gee | March 1, 2016
However, there were some mitigating circumstances.

2015 fourth quarter non-GAAP earnings were US$1.01 per diluted share, up 3 per cent when compared to 2014 fourth quarter earnings of 98 cents per diluted share, and up 13 percent on a currency neutral basis. Compared to the same period in 2014, the translation of foreign currencies negatively impacted 2015 fourth quarter non-GAAP earnings by US$0.10 per diluted share. 2015 fourth quarter GAAP net income was US$141 million, or US$0.93 cents per diluted share. This compares to GAAP net income of US$119 million, or US$0.74 per diluted share, in the year-earlier period.

Key 2015 fourth quarter business highlights:

  • North America revenue was US$4.7 billion with non-GAAP operating margin of 2.62 percent and GAAP operating margin of 2.14 percent. Europe revenue was US$3.4 billion with non-GAAP operating margin of 1.58 per cent and GAAP operating margin of 1.33 per cent. Asia-Pacific revenue was $2.5 billion with non-GAAP operating margin of 2.20 percent and GAAP operating margin of 2.01 per cent. Latin America revenue was US$0.8 billion with non-GAAP operating margin of 2.58 per cent and GAAP operating margin of 2.36 per cent.
  • Return on invested capital for the 2015 full year was 10.7 per cent on a non-GAAP basis, nearly 300 basis points above the company weighted average cost of capital. Return on invested capital on a GAAP basis was 6.9 per cent.
  • During the quarter, Ingram Micro added to its expertise and capabilities across its key strategic initiatives, closing the following acquisitions:
    1. Commerce and fulfillment solutions provider, DocData, one of the leading European providers of order fulfillment, returns logistics and online payment services;
    2. Sao Paulo, Brazil-based, Grupo AÇÃO, one of Latin America's leading providers of critical value-add IT solutions with a portfolio of higher value products, including those from strategic vendors such as IBM, Oracle, Red Hat, EMC and VMware, and solutions offerings including integration services, sales support and financial services; and
    3. Cloud-focused Parallels Odin Service Automation platform.
  • Ingram Micro repurchased 1.7 million shares during the 2015 fourth quarter for a total cost of US$53 million.
  • Ingram Micro's US operations raised nearly $700,000 for local charities resulting from fund-raising events in New York and California.

As previously announced, Ingram Micro has suspended its quarterly dividend payment and its share repurchase program prior to the closing of the company's pending acquisition by Tianjin Tianhai Investment Company, whereby the company will join HNA Group. Also as a result of the acquisition, Ingram Micro is not providing an outlook for the 2016 first quarter or for the 2016 full year.

 

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