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Technology Stocks : HS - CHS Electronics -- Ignore unavailable to you. Want to Upgrade?

To: Ginco who wrote (919)	1/15/1999 11:34:00 AM
From: JakeStraw	Read Replies (1) \| Respond to of 1494

CHS Electronics Update on Latin America and Brazil MIAMI, Jan. 15 /PRNewswire/ -- In response to concerns over Brazil's currency devaluation, CHS Electronics, Inc. (NYSE: HS - news) today commented on its business in Latin America and Brazil. The Company stated the following: -- December 98 actual sales for CHS were in excess of $1 billion, a record month. -- Latin American and Brazilian sales represented 13% and 2.8% of total sales, respectively, in December 1998 versus 19% and 3.5% respectively in Q3 98. -- Latin American net profit was less than 10% of CHS' total net profit for Q3 98. Claudio Osorio, Chairman and Chief Executive Officer, commented, ''Since two quarters ago, CHS has undertaken a very conservative approach to Latin America with very restrictive credit policies. Our business plan was adjusted and expectations reduced accordingly. In fact, in Q3 98, Latin American net profit was less than 10% of CHS' total net profit. Additionally, it is noteworthy to mention that CHS' subsidiaries throughout Latin America principally buy and sell products in local currency, thereby minimizing CHS' foreign currency risk.'' Mr. Osorio added, ''In December 98, we had record sales in excess of $1 billion. Latin America and Brazil represented 13% and 2.8%, respectively, of CHS' total sales, and that is a decline from 19% and 3.5%, respectively, in Q3 98. As revenues in Latin America have remained flat and Europe's growth rate has increased, the Latin American region's share of our overall business has declined and their profit contribution is less than their sales contribution.'' Miami-based CHS Electronics, ranked number 320 on the latest Fortune 500 list of the largest U.S.-based industrial corporations with sales of $7.5 billion and net income of $87.9 million for the last four quarters, is a leading international distributor of microcomputers, peripherals, and software to more than 130,000 resellers in 46 countries in Europe, Latin America, Asia, the Middle East and Africa. Unlike other computer wholesalers, CHS Electronics distributes a limited product line for a limited number of leading computer manufacturers and does so only outside the United States. The company believes that its ''focused distribution'' enables it to respond more quickly to customers, provide better service, and reduce inventory and working capital requirements. CHS believes it is the largest microcomputer distributor in Latin America and Europe. Information regarding CHS Electronics can be found on the company's website at chse.com. SOURCE: CHS Electronics, Inc.