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Non-Tech : Ingram Micro -- Ignore unavailable to you. Want to Upgrade?

To: JP who wrote (283)	2/10/1999 11:07:00 PM
From: JP	Respond to of 576

For any IM fans that may be lurking out there - read the great news!! Rodek: Ingram Comfortable With 1999 Estimates By Scott Campbell Santa Ana, Calif. 8:20 PM EST Wed., Feb. 10, 1999 .............. Ingram Micro Inc. remains comfortable with analysts' expectations for 1999, despite warnings by some competitors that current fiscal-year results may be affected by turmoil in the channel. "When we pre-released earnings [Dec. 22], we told people we were comfortable with the consensus estimate for 1999 [of $2.07 in earnings per share, since lowered to $2.03] and we haven't changed our opinion," said Jeff Rodek, Ingram Micro president and worldwide chief operating officer. Ingram Micro, based here, Thursday reported net income growth of 6 percent from the year-ago quarter, less than a 21-percent increase in sales. Rodek said the acquisition of German distributor Macrotron AG was part of the reason because it was "earnings neutral" for the quarter. He added the fourth quarter also had five less selling days than the year-ago quarter. "That can hurt earnings and reduce sales, which it did," he said. Ingram Micro's U.S. sales grew 7 percent in the quarter, while European sales grew 70 percent [40 percent excluding the impact of Macrotron] and other regions grew 6 percent. "We were below what we would have liked to have delivered, but counter to that, we're extremely pleased with the full-year results," said Rodek. "We're a $22 billion company that grew 33 percent on the top line and 25 percent on the bottom line. Not many Fortune 100 companies are doing that." Rodek said margins are still a problem but the distributor's internal Impulse system and its policy of rewarding its sales force for margin performance and not sales will allow it to remain profitable. "Issuing a blanket statement that you want to go get more business is a dangerous thing. We try to go after smart business," said Rodek. "It continues to be a tough environment, but we feel we have the right commission tools, the right system with Impulse to make the right decision." Tech Data Corp., Clearwater, Fla., also lowered its fiscal-year earnings forecast from $2.80 per share to the $2.30 to $2.40 range, while Merisel Inc., El Segundo, Calif., said 1999 financial results will be affected by investments in the company, expenses from Y2K compliance and the implementation of an SAP operating system in the U.S., depreciation from capital investments and an increase in the company's tax rate.