Ingram points to credit crunch for UK slowdown

Ingram points to credit crunch for UK slowdown

Broadliner sees UK operation struggle to match European business after credit crisis

Ingram Micro has admitted growth at its UK arm fell behind Europe’s other leading economies in its fiscal third quarter due to the adverse impact of the credit crunch.

The broadliner listed Europe as one of its strongest regions for the three months to 29 September as
revenues leapt 18 per cent year on year to $2.86bn (£1.38bn). Operating profit from the region hiked from $23.6m to $29m.

However, Hans Koppen, outgoing European president at Ingram Micro, said the UK could only manage high single-digit growth in local currencies, compared to double digit growth across most of the continent.

“The UK is a little more aligned with the US than some other European countries, which may have had an impact,” Koppen conceded.

Koppen listed networking as one of the quarter’s key hotspots, registering growth of around 35 per cent.

Although Koppen revealed that Ingram is still hunting for niche UK acquisitions in the auto-ID space, he brushed off speculation that the broadliner is eyeing up any larger purchases in the region.

“Many companies are up for sale, but looking for more acquisitions in existing countries that provide coverage that we already have is not our first priority,” Koppen explained.

Alastair Edwards, senior analyst at market watcher Canalys, said: “The market is looking strong across Europe, PC numbers are good and some of Ingram’s key vendors are doing well. But it is a concern that Ingram is seeing some UK weakness.”