Monié sets out Ingram Micro strategy

Incoming Ingram Micro CEO Alain Moni has pledged to improve productivity within the business, grow its higher margin specialty business and invest heavily in its cloud proposition.

Alain_Monie_PPT.jpgIncoming Ingram Micro CEO Alain Monié has pledged to improve productivity within the business, grow its higher margin speciality business and invest heavily in its cloud proposition.

Speaking on his first results call since taking over the role from Greg Spierkel last month, Monié  said there were three key imperatives for the distributor.

"We need to continue to improve productivity in our traditional distribution business to ensure we have the optimal enviornment to foster growth and deepen profitability for the high volume machine," said Monié.

"Two, we must ghrow our higher margin speciality business faster; these relatively small revenue contributors bring significantly better operating income. Three, we will continue to invest to remain a leader by driving innovation such as our cloud platform and marketplace," he continued.

The CEO, who returned to Ingram Micro last year after a spell outside the IT industry, also hinted that the distie would seek to acquire to reinforce its growth plans.

"We are going to look at probably being a little more aggressive at looking at what's out there in M&A," he revealed, adding that the firm would take a cautious approach to any acquisition strategy in light of a risky worldwide business environment.

Monié was speaking at the close of Ingram Micro's fourth quarter, a period during which worldwide sales remained broadly flat, ticking up just 1% to $9.95bn (£6.28bn), and net profit fell 8.8% to $104.9m.

In Europe, Ingram saw record high operating income during the last quarter of the year thanks to its HDD inventory position, and although quarterly sales were down 5% to $3.2bn, the distie said it was generally pleased with its regional performance.

Monié pointed to anchor countries of France, Germany and the UK as being reasonably solid based on good spending in assembly and corporate sales, which offset weakness on the retail side. He also singled out the data capture/POS unit as a star performer.

He remarked that the region was showing a "hodgepodge of different behavioural patterns" and it remained difficult to understand quite how the Eurozone crisis might play out in regard to the channel, but said the firm would continue to watch the market closely and "if we see any movement downwards that would warrant a structural adjustment, we will do so."

Ingram booked full-year sales of $36.3bn, up 5% on 2010, and net profit of $244.2m, down 23%, and said it expected to make low to mid-single digit growth in its fiscal 2012, while first quarter sales are expected to be down owing to economic factors in Europe, and the lingering effect of a botched SAP implementation Down Under.

Transcript courtesy: Seeking Alpha

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