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Ingram Micro announces global blockbuster fourth quarter; Australia performs strongly

Mike Gee | Feb. 17, 2014
Ingram Micro Australia is celebrating hitting budget as globally the company delivered a record-breaking fourth quarter ending December 28, 2013.

As a result of the alignment and de-layering programs, the company expects annual savings between $US80 and $US100 million. One-time restructuring, integration and other reorganisation costs associated with these programs are expected to be between $US80 and $US100 million, which includes $US8 million in costs associated with implementation of initiatives that occurred in the fourth quarter of 2013.

The majority of the costs are expected to be incurred in the first half of 2014. The company anticipates the majority of the cost savings beginning to occur in the second half of 2014 and the full run rate of savings to be realiSed in 2015.

Monie said, "Our company is proactively accompanying great changes in the technology industry and evolving its business composition and structure accordingly. As we explore and execute on our various initiatives for growth and stronger profitability, the overall objective of our organisational effectiveness programs — which we have been working at developing over the past few months — is 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, while generating greater, sustainable shareholder value."

For the 2014 year, the company currently expects worldwide revenue to grow in the low- to mid-single-digits, in-line with overall global IT spending. The company also expects to drive solid non-GAAP operating leverage in 2014, as additional investments into the business are more than offset by continued execution, operational improvement and benefits from earlier investments, as well as the favorable impact in the second half of 2014 from the company's organisational effectiveness programs.

For the 2014 first quarter, the company currently expects a low double-digit sequential decline in worldwide revenue and a high-teen basis point sequential decline in gross margin, both in-line with recent historical seasonality.

The company also said that it is continuing its organic investments, which also now include investments into recently acquired businesses to leverage Ingram Micro's global reach. Diluted weighted average shares outstanding for the 2014 first quarter are expected to be 158.5 million.


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