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What: Ingram Micro
So what: EPS of $0.38 was down 17% from the year-earlier quarter and far short of the consensus estimate of $0.48. Management said the main reason for the disappointing earnings was difficulty transitioning to a new business management system in Australia.
Now what: Management stated the Australia transition is "progressing" but will likely impact the current quarter. The company also indicated profit margins are being pressured by competitive pricing in certain Asian markets, softer retail demand in Europe, and accelerated growth in emerging markets such as China and India (where it has lower margins). Many of these challenges could persist for some time and the company's transition to a new business management system is in not expected to be complete for approximately three years.
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