Ingram Micro Reports Third Quarter 1999 Results In Line With Earlier Estimates

SANTA ANA, Calif. (PROTEXT) - Ingram Micro Inc. (NYSE: IM),the world's largest wholesale provider of technology products andservices, today announced its financial results for the thirdquarter ended Oct. 2, 1999, in line with previous estimates thecompany made on Sept. 8, 1999. For the quarter, the company posted net sales of $6.71billion, up 18 percent over the same period a year ago. Netincome was $17.6 million, or $0.12 per share, excluding $2.7million pre-tax in reorganization costs incurred during theperiod related to streamlining plans the company outlined inMarch of this year. These results compare with the company'spreviously announced estimates of net income for the quarter of$15 to $21 million, or $0.10 to $0.14 per diluted share.Including the reorganization costs, net income for the quarter,was $15.8 million, or $0.11 per diluted share. In the thirdquarter of 1998, the company reported net income of $59.8million, or $0.40 per diluted share. "As expected, Ingram Micro's third quarter results werenegatively affected by the difficult market conditions that arebeing experienced throughout our industry, including intensecompetitive pricing and increased reductions in vendor rebatesand incentives, primarily in the United States," said Jerre L.Stead, chairman and chief executive officer. "Despite these short-term issues, Ingram Micro continues to bewell- positioned strategically," he said. "We continue toexperience solid demand for our core products and services andpursue emerging opportunities in areas such as logisticsoutsourcing for our business partners. Increasing numbers ofresellers, manufacturers and Internet retailers are aligning withIngram Micro and other industry leaders in distribution to formstrategic relationships to serve the technology market. Ourexperienced management team is focused on providing value-addedservices to our customers, increasing the efficiencies of ouroperations, and pursuing new growth opportunities during thisindustry transition." For the first three quarters of 1999, net sales for thecompany grew 28 percent to $20.24 billion. Year-to-date throughthe third quarter of 1999, net income was $108.4 million, or$0.73 per diluted share, and compares to $172.0 million or $1.15per diluted share for the same period in 1998. About Ingram Micro Ingram Micro Inc. (NYSE: IM), headquartered in Santa Ana,Calif., is the world's largest wholesale provider of technologyproducts and services, and a leader of assembly and integrationservices with sales of $26.5 billion for the past four reportedquarters. The company and its subsidiaries operate in 34countries and distribute more than 225,000 products to more than140,000 resellers in 130 countries. Ingram Micro can be found atingrammicro.com.

INGRAM MICRO INC.

CONSOLIDATED BALANCE SHEET

(Dollars in 000s, except per share data)

(Unaudited)

October 2,

January 2,

1999

1999 ASSETS Current assets:

Cash

$134,963

$96,682

Trade accounts

receivable, net

2,738,539

2,562,050

Inventories

2,735,175

3,094,227

Other current assets

351,949

278,591

Total current assets 5,960,626

6,031,550 Property and equipment, net

298,792

254,718 Goodwill, net

455,732

232,112 Other

485,457

215,024

Total assets

$7,200,607

$6,733,404 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:

Accounts payable

$3,419,738

$3,306,045

Accrued expenses

327,044

254,627

Current maturities of

long-term debt

31,615

38,978

Total current liabilities

3,778,397

3,599,650 Convertible debentures

434,433

473,475 Other long-term debt

1,037,616

1,208,003 Other

90,259

53,019

Total liabilities

5,340,705

5,334,147 Stockholders' equity

1,859,902

1,399,257

Total liabilities and

stockholders' equity $7,200,607

$6,733,404

CONSOLIDATED STATEMENT OF INCOME

(Dollars in 000s, exceptper share data)

(Unaudited) Thirteen Weeks Ended

Thirty-nine Weeks Ended October 2,

October 3, October 2, October 3, 1999

1998

1999

1998 Net sales $6,710,093

$5,707,974 $20,240,181 $15,814,183 Cost of sales 6,388,205

5,350,176 19,191,211 14,810,993 Gross profit 321,888

357,798

1,048,970

1,003,190 Selling, general and administrative expenses 266,447

239,370

792,131

657,808 Income from operations before reorganization costs 55,441

118,428

256,839

345,382 Reorganization costs 2,675

--

10,959

-- Income from operations 52,766

118,428

245,880

345,382 Interest and other expense 28,015

19,106

80,364

59,433 Income before income taxes 24,751

99,322

165,516

285,949 Provision for income taxes 8,913

39,530

60,863

113,996 Income before extraordinary items 15,838

59,792

104,653

171,953 Extraordinary gain on repurchase of debentures ($6,183, net of $2,405 in income taxes) --

--

3,778

-- Net income $15,838

$59,792

$108,431

$171,953 Diluted earnings per share $0.11

$0.40

$0.73

$1.15 Diluted weighted average shares outstanding 148,042,324 150,660,080 148,098,240 149,591,271 ots Original Text Service: Ingram Micro Inc. Internet:http://www.newsaktuell.de Contact: investor relations, KimStrohm, 714-382-4400, or media relations, Cara Stewart, 714-382-1404, both of Ingram Micro Inc. Web site:http://www.ingrammicro.com

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