Fourth Quarter Earnings Before Certain Items
Fourth Quarter Revenue Guidance Updated
SANTA ANA, Calif., Dec. 9 /PRNewswire-FirstCall/ -- Ingram Micro Inc. (NYSE: IM) today reaffirmed its previously announced guidance for fourth quarter net income before reorganization costs, major-program costs and special items.
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Net income before these items is expected to range from $26 million to $29 million or $0.17 to $0.19 per share, as the company announced on Oct. 29, 2002. Sales now are expected to approach the low end of the previously disclosed range of $5.75 billion to $5.90 billion.
"Our intense focus on improving profitability continues to drive bottom-line results," said Kent B. Foster, chairman and chief executive officer. "As reported by industry analysts and our peers, the demand environment in North America is a bit softer than we originally expected. Rather than chase unprofitable sales, however, we are concentrating on protecting our margins through disciplined pricing and by generating fee-based revenues."
The company plans to report financial results for the fourth quarter (ending Dec. 28, 2002) in late February 2003.
Cautionary Statement for the Purpose of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995
The matters in this press release that are forward-looking statements are based on current management expectations that involve certain risks which if realized, in whole or in part, could have a material adverse effect on Ingram Micro's business, financial condition and results of operations, including, without limitation: the Company's failure to achieve intended cost reductions or profit improvement objectives under its recently announced profit enhancement program; disruptions in business operations due to reorganization activities; potential material decline in net sales if major suppliers significantly increase the level of business they transact directly with end-users and/or resellers in different product categories, customer segments, and/or geographies; potential decline in net sales and/or gross margins if the Company is not able to pass through to customers the impact of adverse changes in sales terms and conditions with major suppliers; potential termination of a supply or services agreement with a major supplier or customer; dependence on key individuals and inability to retain personnel; the continuation or worsening of the severe downturn in economic conditions (particularly purchases of technology products) and failure to adjust costs in a timely fashion in response to a sudden decrease in demand; losses resulting from significant credit exposure to reseller customers and negative trends in their businesses; continued pricing and margin pressures and intense competition within regional markets and internationally; future terrorist or military actions; reductions in credit ratings and/or unavailability of adequate capital; inability to manage future adverse industry trends; failure of information systems; interest rate and foreign currency fluctuations; adverse impact of governmental controls and actions and political or economic instability on foreign operations; product supply shortages; difficulties and risks associated with integrating operations and personnel in acquisitions; rapid product improvement and technological change and resulting obsolescence risks; and dependence on independent shipping companies.
Ingram Micro has instituted in the past and continues to institute changes to its strategies, operations and processes to address these risk factors and to mitigate their impact on Ingram Micro's results of operations and financial condition. However, no assurances can be given that Ingram Micro will be successful in these efforts. For a further discussion of significant factors to consider in connection with forward-looking statements concerning Ingram Micro, reference is made to Exhibit 99.01 of Ingram Micro's Annual Report on Form 10-K for the year ended December 29, 2001; other risks or uncertainties may be detailed from time to time in Ingram Micro's future SEC filings.
About Ingram Micro Inc.
As the world's leading wholesale provider of technology products and supply chain management services, Ingram Micro provides the best way to get technology from the people who make it to the people who use it. Visit www.ingrammicro.com/corp .
(C) 2002 Ingram Micro Inc. All rights reserved. Ingram Micro is a trademark used under license by Ingram Micro Inc.
SOURCE Ingram Micro Inc.