Make us your home page

Tech Data rides strong European sales to record quarter

Bob Dutkowsky doesn't buy into the common description of his $24 billion operation as a bellwether for where tech sales are headed.

"We're more like a thermometer" measuring current demand for computers and other electronic products around the world, said Dutkowsky, chief executive of Clearwater-based Tech Data Corp.

By that measure, fears of a double-dip recession in the United States or Europe appear overblown.

The global computer parts distributor, Tampa Bay's largest public company by revenue, beat Wall Street expectations in posting a 23 percent surge in net income in its fiscal quarter ended July 31.

Net income reached a quarterly record of $50.1 million, or $1.10 per share, compared with year-ago earnings of $40.9 million, or 82 cents per share. Revenue totaled $6.45 billion, up 18 percent from $5.47 billion in the same period last year.

The results beat analysts' consensus estimate of $6.13 billion, or 96 cents per share.

Separately, Tech Data announced that it planned another stock buyback for $100 million on the heels of completing a $200 million stock buyback. Neither report, however, was enough to overcome Thursday's widespread selloff in the markets. Shares in Tech Data closed at $41.46, down $1.05, more than 2 percent.

The company, operating in more than 100 countries, posted a 30 percent sales jump to $3.75 billion in Europe, with results aided by currency conversions. Sales in North America and Latin America rose 4 percent to $2.7 billion.

Dutkowsky credited strong execution in overcoming "global macroeconomic uncertainty and volatile markets."

Other tech distributors, such as Synnex Corp. and Arrow Electronics, have forecast lower earnings than expected. Tech Data, which distributes products made by Cisco, Apple, Hewlett-Packard and others, is different because of its geographic diversity and product mix, Dutkowsky said.

Key to the performance: picking the right spots and "having the flexibility to change with tech-buying habits," he said.

Sales of mobile products, for instance, grew 64 percent year over year with cell phones and tablets, in particular, driving sales. One of the fastest-moving products in Tech Data's distribution pipeline is the relatively new iPad. Laptops, desktops and servers also were strong.

Geographically, sales in economically troubled European markets like Spain, Portugal and Italy declined in the double digits. But that was offset by strong growth in Germany, France and the United Kingdom, the company said.

Looking ahead, Tech Data said a tax investigation at its Brazil unit could hurt future financial results.

Nevertheless, it forecast single-digit organic sales growth in the third quarter in both the Americas and Europe along with double-digit growth in earnings.

Tech Data rides strong European sales to record quarter 08/18/11 [Last modified: Thursday, August 18, 2011 9:03pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times


Join the discussion: Click to view comments, add yours

  1. For Gov. Rick Scott, 'fighting' could mean vetoing entire state budget

    State Roundup

    Every day, Gov. Rick Scott is getting a lot of advice.

    The last time a Florida governor vetoed the education portion of the state budget was in 1983. Gov. Bob Graham blasted fellow Democrats for their “willing acceptance of mediocrity.”
  2. Potential new laws further curb Floridians' right to government in the Sunshine

    State Roundup

    TALLAHASSEE — From temporarily shielding the identities of murder witnesses to permanently sealing millions of criminal and arrest records, state lawmakers did more this spring than they have in all but one of the past 22 years to chip away at Floridians' constitutional guarantees to access government records and …

    The Legislature passed 17 new exemptions to the Sunshine Law, according to a tally by the First Amendment Foundation.
  3. Data breach exposes 469 Social Security numbers, thousands of concealed weapons holders


    Social Security numbers for up to 469 people and information about thousands of concealed weapons holders were exposed in a data breach at Florida the Department of Agriculture and Consumer Services. The breach, which the agency believes happened about two weeks ago, occurred in an online payments system, spokesperson …

    Commissioner of Agriculture Adam Putnam on Monday that nearly 500 people may have had their Social Security numbers obtained in a data breach in his office.
[Times file photo]

  4. Trigaux: Can Duke Energy Florida's new chief grow a business when customers use less power?


    Let's hope Harry Sideris has a bit of Harry Houdini in him.

    Duke Energy Florida president Harry Sideris laid out his prioriities for the power company ranging from improved customer service to the use of more large-scale solar farms to provide electricity. And he acknowledged a critical challenge: People are using less electricity these days. [SCOTT KEELER   |   Times]
  5. Citigroup agrees to pay nearly $100 million fine for Mexican subsidiary


    NEW YORK — Citigroup has agreed to pay nearly $100 million to federal authorities to settle claims that a lack of internal controls and negligence in the bank's Mexican subsidiary may have allowed customers to commit money laundering.

    Citigroup has agreed to pay nearly $100 million to federal authorities to settle claims that a lack of internal controls and negligence in the bank's Mexican subsidiary may have allowed customers to commit money laundering. 
[Associated Press file photo]