INTERVIEW
New view from the top
by John Garratt
john.garratt@iteuropa.com
Ingram Micro’s figures for 2007 show a strong core business coupled with
some caution for 2008 (report in financial pages). Our first discussion
with new Ingram Micro Europe president Jay Forbes (right) shows a man
in command of his brief, in spite of being new to distribution, new to
Ingram Micro, new to the IT business as a whole...
Y
es, it’s a new industry and a new culture, Meanwhile, he says, in the Nordics, the market
he agrees, but Jay Forbes is impressed with remains over-distributed and very competitive
what he has found. “I’m delighted by the even though it had a profitable 2007 after a long
sophistication of the credit function,” he says. In turnaround period. Magnus Högvall, MD Ingram
what could be a testing period, this is one core Micro Nordics, has been working on a plan for the
activity that needs to be good. What sort of 2008 next three years, repositioning the product mix
is he seeing? and customers to get back to acceptable operating of sale distributor serving the UK and Ireland,
“We can trace this to the macro-economic margins. It’s not done yet, but progress is expected. which coupled with the acquisition of SymTech
environment and the credit markets. We’ve seen Another trouble-shooter, European VP Vicenzo in mid-2006 strengthened its position in these
it permeate the UK and then mainland Europe. All Baggio, is out in Italy fixing things. “It’s great to newer technologies. The goal is to be a strong pan-
segments of the market are affected, and it means having him in Milan; we started to have some good European player in this adjacency within two years,
we need to be a little more conservative in our results in Q4 and I like how 20008 is shaping,” according to CEO Greg Spierkel.
expectations in the first half of the year.” says Forbes. “Italy still has some more challenging Jay Forbes: “There’s a lot of overlap with the
But the balance sheet is strong, he says, so aspects – shifting politics not the least, and the core business here. With Paradigm, at the moment
Ingram Micro will be there for its customers in economy is suffering – but in the longer term it we are keeping its sales and marketing separate
difficult times. represents one of the better prospects in Europe.” while we focus on its integration.”
CEO Greg Spierkel mentioned EMEA in his Two other cornerstone countries, the UK and www.ingrammicro.com
comments after the latest figures, reporting France, performed well in 2007, in spite of the
OUR ANALYSIS
that the EMEA region had an excellent quarter, frustration of a transportation strike during the
generating 32% operating income growth on 16% quarter in the latter, which made progress even With initiatives in Ireland with Cisco, and with
sales growth. While they got about a 12% point more notable. HDS, (see news) Ingram Micro is gearing up for
tailwind from currency translation, nearly every Ingram Micro has recently announced the growth with higher margin products and services.
country generated year-over-year growth in local acquisition of Paradigm, a data capture and point- We’ll talk to Jay Forbes again later in the year.....
currencies, he said.
Germany is now benefiting from upgraded
warehouse management system that was installed
Ingram Micro acquisitions even more likely....
in the prior year. Sales margins and profitability Greg Spierkel, CEO, talking at the post-figures broader goals, we’re going to continue to invest
improved there as well as in Austria and analyst briefing: “While investing in services, point- just like we’re continuing to invest to some degree
Switzerland. But Jay Forbes reveals that further of sale, enterprise and computing storage solutions, in IT and infrastructure, and process improvements,
facilities expansion is planned for Germany this I would say M&A activity is still and as far as we are and standardisation, just because, again, we feel it’s
year. “This is one of two key investments in 2008.” concerned, a fair game. Because we are generating the right thing to do for the long-term.“
The company will replace off-site facilities with free cash and feel that we’re in a good financial It’s all about mid-term to long-term value
the addition of a second warehouse next to the situation from a leverage point of view to do that.” creation, and if the free cash flow allows Ingram
first one that will double its capacity. The other big “If the market does present greater Micro to make those investments in a tactical way
investment will be in Tarragona, Spain, where the opportunities than we might have seen a year ago and as well as in long-term way, it will jump at the
market growth is positive, he says. on value and in position and it complements our chance.
29 feb 2008 15
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