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ORANGE COUNTY EARNINGS

Ingram Micro's 65% Gain Betters Analysts' Estimates

October 30, 1997|Times Staff and Wire Reports

SANTA ANA — Ingram Micro Inc. said Wednesday that its third-quarter net income jumped 65%, exceeding analysts' estimates, on strong personal computer sales.

Executives of Ingram Micro, the world's biggest computer wholesale distributor, also said they expect strong industry demand in the fourth quarter as well, despite weakening Asian economies.

Ingram Micro said net income for the quarter climbed to $44.3 million, or 30 cents a share, from $26.9 million, or 22 cents a share, a year ago. The net income this year included a charge of $1.5 million, while the results a year ago included a charge of $645,000. Sales rose 41% to a record $4.1 billion from $2.9 billion.

Wall Street had expected Ingram Micro to earn 28 cents a share, according to Zacks Investment Research, which tracks analyst earnings forecasts.

Jerre Stead, Ingram's chief executive, said the company's strong performance during the quarter was due to strong demand for computers and software, and market share gains at the expense of competitors.

Stead also said he does not expect to see much impact from slowing Asian economies because investment in technology remains strong there. Southeast Asia, hammered by falling currencies, also is Ingram's smallest geographic sales region.

For the first nine months, net income advanced 61% to $124.6 million, or 85 cents a share, from $77.6 million, or 64 cents a share, for the comparable period last year. Sales increased 35% to $11.5 billion from $8.5 billion.

Ingram released its results after the market closed. Its stock climbed $2.06, or 7.5%, to $29.56 a share on the New York Stock Exchange.

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