Ingram Micro 1Q Profit Down 57 Percent

SANTA ANA, Calif. (AP) — Technology products distributor Ingram Micro Inc. said Thursday its first-quarter profit plunged 57 percent as the economic downturn hurt sales.

Quarterly earnings dropped to $27.5 million, or 17 cents per share, from $64.1 million, or 37 cents per share, in the same period last year. Excluding one-time items profit totaled 23 cents per share, topping Wall Street's expectations.

Analysts surveyed by Thomson Reuters had predicted earnings of 13 cents per share, on average.

Sales sank 21 percent to $6.75 billion from $8.58 billion in the year-ago quarter, but matched Wall Street estimates.

The company said fluctuating exchange rates accounted for 8 percent of the decline. Revenue fell in all the company's geographic segments as customers pulled back on IT spending amid the weak economy.

"With the recession now affecting all regions, we do not expect a pickup in sales for several more months, perhaps for the remainder of the year," said Gregory Spierkel, Ingram Micro's chief executive officer. "However, we don't feel the market getting worse at this stage."

Shares closed up 2 cents at $14.52.