Tech Data 3Q profit more than doubles as costs dip

AP News
Posted: Nov 23, 2009 1:03 PM

Tech Data Corp. on Monday said its third-quarter net income more than doubled as lower interest expenses and a smaller foreign-exchange loss more than offset a decline in revenue.

The distributor of technology products, ranging from software to printers, earned $43.1 million, or 84 cents per share, compared to $16.8 million, or 33 cents, in the year-ago period.

Net sales fell 8 percent to $5.64 billion from $6.14 billion. Analysts were expecting earnings of 71 cents and revenue of $5.3 billion, according to Thomson Reuters. Analysts typically exclude one-time items.

Tech Data was able to boost earnings in the third quarter partly because net interest expenses fell to $5.8 million from $9.2 million. It also posted a $1 million loss related to foreign currency translation compared with a loss of $23.5 million for last year's quarter.

The net sales comparison in the quarter got a 2 percent boost from foreign exchange.

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In North and Latin America, sales fell 10.9 percent to $2.46 billion while European sales were down 5.7 percent to $3.2 billion. Excluding the effects of foreign exchange, sales were down 9 percent in Europe.

Shares of Tech Data, based in Clearwater, Fla., were up 46 cents to $43.28 in afternoon trading.