Ingram Micro posts better-than-expected 2Q

Ingram Micro (NYSE: IM) topped the consensus analyst estimate by a penny in the second quarter.

After market close Tuesday, the biggest technology distributor in the world reported second quarter net income of $33.2 million, or 22 cents per share. First Call's survey of a dozen analysts predicted a profit of 21 cents per share.

Shares of Ingram Micro closed up 5/8 to 18 3/4 in Tuesday's regular trading, prior to the earnings report.

Second quarter revenue increased 7 percent year-over-year to $7.3 billion, with sales outside the United States and Europe leading growth with a 24 percent improvement. U.S. sales gained 4 percent. European revenue grew 7 percent.

Gross margin, a concern for Ingram Micro in previous quarters, rose to 4.96 percent of net sales.

"We made a conscious decision this quarter to drive profitability throughout our organization," said Kent Foster, CEO and chairman. "It began with pricing policy changes and continued with improved terms and conditions, more efficient inventory management and a focus on increasing productivity through automated processes."

Ingram Micro's inventory stood at $2.55 billion at the end of June, down 26 percent since the end of 1999. Debt fell to $1.04 billion from $1.342 billion over the same period.

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