Ingram Micro to slash $100m in savings plan

Broadline distributor Ingram Micro aims to cut between $80m and $100m in a cost-cutting drive this year, but keeps quiet on possible redundancies

A bullish Ingram Micro has revealed plans to embark on a major restructuring plan this year that will see it eke out somewhere between $80m and $100m in savings.

In its fourth quarter results announcement, Ingram talked of its desire to help the firm get to grips with evolving businesses and opportunities.

It hopes to achieve this through simplifying its organisation to improve its agility and responsiveness, and maintaining investments in expertise and capabilities to push deeper into growing, high margin areas.

It expects the majority of the costs incurred through this programme to fall somewhere in the first half of calendar 2014, with savings starting to appear in the back end of the year, and the full run rate of savings to be realised in 2015 and beyond.

Ingram gave, however, no details of any redundancies that may be associated with the plan.

CEO Alain Monié said his main objective was “to streamline and focus our resources to run our businesses faster, smarter and better to capture the tremendous opportunities we have already started to invest in.”

Monié’s remarks came at the close of a strong fourth quarter over at Ingram, which saw sales grow by 4% to $11.8bn. Net profit of $112.2m was up 10.8% year-on-year.

The distributor said its European sales were up 7%, 3% at constant currency rates, with the UK, France and the Netherlands strong regional performers.

For the 12 months to the end of December, revenues were up 12% to $42.6bn and net profit was up 1.5% to $310m compared to fiscal 2012.

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