Tech Data managed to push up sales and profits in Q2 despite sailing into a foreign currency headwind, which was compounded by continued economic challenges on both sides of the Atlantic early in the trading period. .
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The broadline leviathan reported a 5.6% rise in turnover to $5.47bn, operating profit went up 22.1% to $65.8m and net income climbed 16.2% to $40.9m. The strengthening of the dollar knocked 6 percentage points off year-on-year sales.
"Despite various macroeconomic uncertainties at the start of the quarter, the IT market grew at a good pace in both of our regions," said CEO Bob Dutkowsky.
Sales in the Americas were up 8.4% to $2.6bn and operating income leapt 26%
to $44.6m while sales of $2.87bn in Europe represented a more modest 3.2% increase as operating profit rose 11.7% to $23.8m.
Dutkowsky said Tech Data had been moving away from less profitable or capital intensive businesses over the last couple of quarters "significantly improving the quality of our vendor and customer portfolios".
He added this had resulted in some market share gains, an expansion of operation margin and a return on capital employed that was the envy of competitors.
The impact of foreign exchange rates will have a "more pronounced effect" on results in the second half of the year said Dutkowsky but it would maintain a handle on expense and asset management.