Tech Data posts big gains in third quarter

Tech Data Corp. said third quarter net income was $40.9 million, or 73 cents a share, compared to net income of $9.6 million, or 18 cents a share, for the prior-year period.
The company said net sales for the three months ended Oct. 31 were $5.9 billion, an increase of 9.1 percent from $5.4 billion in the same three months a year earlier.
During the third quarter one year ago, the company had recorded $6.1 million in restructuring charges and $2.8 million in consulting costs related to its European restructuring program that was completed in October 2006, according to a release.
The European operations continue to strengthen and gain traction in the marketplace, although there is still work to do to improve execution and profitability, Robert Dutkowsky, chief executive, said in the release.
He said the just-completed third quarter's sales and income gains were due to steady market conditions, sales execution, a focus on the small and mid-sized business sector, and product and inventory management efforts.
For the nine months ended Oct. 31, Tech Data said sales were $16.9 billion, an increase of 10.6 percent from $15.3 billion in the year-earlier period. Net income was $58.1 million, or $1.05 a share, compared to a net loss of $133 million, or $2.41 a share, in the same period a year earlier.
For the fourth quarter ending Jan. 31, Tech Data expects net sales of $6.35 billion to $6.5 billion, the release said. The company said it expects double-digit year-over-year growth in the Americas but a mid-to-high single-digit decline in Europe, reflecting a reduction in retail business as well as a decision to exit operations in Israel and the United Arab Emirates, the release said.
Tech Data (NYSE: TECD), based in Clearwater, distributes IT products and is the largest publicly traded company based in the Tampa Bay area.
credited by: bizjournals.com