Ingram Posts Threefold Rise in Quarterly Profit

Ingram Micro Inc., the world’s biggest distributor of computers and gadgets, reported a threefold increase in first-quarter profit on higher revenue but warned that second-quarter results would be hurt by weakening European currencies.

The Santa Ana company posted net income of $37.6 million, or 24 cents a share, in the period ended April 3, thanks to cost-cutting efforts and increased sales in Europe. That’s up from $10.1 million, or 7 cents a share, a year earlier. Sales grew 14.5% to $6.3 billion.

The results were in line with what analysts expected, according to Thomson First Call.

“Europe was our star performer,� said Ingram Chief Executive Kent B. Foster.

Sales in Europe, which contributed 42% of the firm’s overall revenue, grew 35% to $2.6 billion. More than half of the gain came from a favorable exchange rate from strong European currencies. Sales in the U.S., which accounts for 44% of Ingram’s revenue, were flat at $2.8 billion.

Executives cautioned that European currencies were likely to weaken this summer, which would hurt sales and profit. Ingram reduced its second-period sales forecast to a range of $5.6 billion to $5.8 billion. Analysts on average had expected $6.1 billion, according to Thomson First Call.

Ingram also said net income would fall to $21 million to $25 million, or 13 to 16 cents a share. Analysts, who said the guidance was “disappointing,� had expected net income of $36 million, or 22 cents a share.

“We’re starting to see demand for [information technology] products emerge,� Foster said.

Ingram’s shares fell 72 cents to $16.08 on the New York Stock Exchange in regular trading but rose to $16.28 after hours.