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Ingram Micro Reports Q3

SANTA ANA, Calif. — Ingram Micro Inc. (NYSE: IM), the world's largest technology distributor and supply-chain services provider, today announced double-digit increases in sales and profits for the third quarter ended October 2, 2010.

Worldwide sales for the third quarter were $8.45 billion, an increase of 14 percent compared with $7.38 billion in the prior-year third quarter. Weaker foreign currencies in Europe, partially offset by stronger foreign currencies in Asia-Pacific and Latin America, had a cumulative negative effect on worldwide sales of approximately two percentage points.

Net income and earnings per share grew to $65.0 million or $0.41 per diluted share, which includes incremental expenses aggregating to $0.03 per diluted share related to: additional interest expense from the company’s $300 million public debt offering completed in August; and foreign exchange losses resulting from the accounting impact of currency fluctuations on Euro-based inventory purchases in the company’s Pan-European entity, which designates the US dollar as its functional currency. This compares with net income of $42.3 million or $0.25 per diluted share in last year’s third quarter, which included costs of approximately $0.04 per diluted share related to charges for expense-reduction programs.

“We continued to demonstrate meaningful leverage in our business model, with year-over-year operating and net income gains far outpacing sales growth,” said Gregory Spierkel, chief executive officer, Ingram Micro Inc. “Our three largest regions generated double-digit sales and operating income growth for the third consecutive quarter, driven by solid demand for technology products, stronger vendor and customer relationships, innovative products and solutions and a more efficient infrastructure. Sales in Asia-Pacific hit a historic high while North American sales were at the highest third quarter level in 10 years. Our focus remains on generating value through operational excellence and building a presence in exciting, higher-margin markets. We’re optimistic about our future and dedicated to improving shareholder return, as reflected by a new share repurchase program we are announcing today.”

The company’s board of directors authorized a three-year, $400 million share repurchase program, following the completion of its $300 million share repurchase program authorized in November 2007 and its $100 million share repurchase program authorized in May 2010. Ingram Micro has repurchased more than 24 million shares of common stock during the last three years.

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