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Ingram to "De-layer" via $100m Restructure

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Next year will see Ingram Micro spending $80-$100 million to "de-layer" and "align" its global infrastructure and internal organisations in the hopes of annual savings worth... $80-100 million.

Ingram MicroThe distributor already coughed up $8m on restructuring during Q4 2013. The rest will be spent during H1 2014, meaning Ingram will only see the eventual cost-saving results by 2015.

As CEO Alain Monie puts it, "the overall objective of our organisational effectiveness programs... is to streamline and focus our resources to run our businesses faster, smarter and better to capture the tremendous opportunities we have already started to invest in, while generating greater, sustainable shareholder value."

The announcement comes as the distributor reports Q4 2013 and full 2013 results-- global Q4 sales reach a record $11.8 billion with 4% Y-o-Y growth, profit totals $710m (6% of total sales) and operating income amounts to $173m (1.46% of sales). Meanwhile full year revenue grows by 12% to $42.6bn and operating income reaches $515m with 2.8% growth.

European Q4 2013 sales see 7% growth to reach $3.3bn, with "incremental stabilisation" in several countries including France and the Netherlands.

The distributor concluded a trio of major acquisition during the quarter-- Softcom (domain name management, web hosting and IaaS), CloudBlue (supply chain and mobile device lifecycle services) and Shipwire (cloud logistics and supply chain SaaS).

As for 2014 Ingram expects low- to mid-single-digit growth, with a low double-digit Q-o-Q declines for Q1 2014. It will also continue "organic" investments, including investments in recent acquisitions to leverage global reach further.

Go Ingram Q4 2013 Earnings Report