07 Apr
Posted by Brian Anderson as Finance Help
US hardware and services wholesaler Ingram Micro (NYSE: IM) is planning a two-pronged focus aimed at increasing its presence in Chile’s retail sector and Argentina’s corporate sector, the director of the company’s Chile and Argentina units, Alejandro Castro, told BNamericas.
Castro said Ingram has traditionally not been a “relevant player” in Chile’s retail segment, but noted that the company hopes to reverse that trend through sales of products such as monitors, storage, accessories and laptops.
Ingram Micro has made strides to expand its offering in the latter product area, by incorporating PCs from manufacturers such as Japanese electronics manufacturer Toshiba and Chinese manufacturer Lenovo.
“We hope that both our market share in ‘A’ retail – which refers to large retailers – and also second-tier retail increases significantly,” he said.
Ingram Micro will also be stepping up logistics services for Chilean companies, Castro said, noting that such services include product importation and distribution for vertical markets such as the government.
Meanwhile, the company’s strategy in Argentina will revolve around incorporating new products from tech giants such as Microsoft (Nasdaq: MSFT) and US chip manufacturer Intel (NYSE: INTC), as well as increasing its client base in the corporate sector.
Ingram Micro expects revenues in Chile and Argentina to increase 10% and 35%, respectively, this year.
WAIT AND SEE
Last month, US IT wholesaler Avnet Technology Solutions (NYSE: AVT) disclosed plans to purchase US IT products wholesaler Bell Microproducts (Nasdaq: BELM), which represents one of Ingram Micro’s direct competitors in Latin America.
Shortly after the announcement was made, Avnet’s CFO Ray Sadowski told BNamericas that his company will now look to leverage Bell’s positioning across the region, making special note of Chile and Brazil, followed by Mexico.
Ingram’s Castro described the acquisition as a surprise, and said he still needs to wait and see the effect that it will have on operations in Chile and Argentina.
“In my personal opinion… I think that we have to wait a little bit,” he said. “It’s not very clear what Avnet is looking for with this purchase, because Bell Micro was much more oriented towards value-added products in the US and Europe, but not in Latin America. It’s not clear what orientation the company will have.”
2009 WRAP-UP
Ingram Micro saw revenues in Chile and Argentina increase 5% and 35%, respectively, last year. Business picked up during the latter months of the year as the worst of the global economic slowdown passed.
The company has about 10 resellers in Argentina and more than 50 in Chile, all of which help the wholesaler serve more than 1,000 clients in the respective countries.
Globally, Ingram Micro’s yearlong net profits reached US$202mn last year, in comparison to a loss of US$395mn in 2008. Global sales fell 14% to US$29.5bn.
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