Ingram Expects 4th-Quarter Charges

Ingram Micro Inc., the world’s largest distributor of computer products, warned Monday that it was likely to record significant charges against its fourth-quarter earnings because of an ongoing cost-cutting and restructuring program.

The Santa Ana company reiterated that it expected to report sales of $5.7 billion to $5.9 billion and net income excluding items of $32 million to $37 million, or 21 to 24 cents per share, in its fiscal fourth quarter.

“Customer activity and economic reports have been promising, which gives us greater confidence in generating sales around the top of the guidance range,” Chairman and Chief Executive Kent B. Foster said in a statement.

Analysts expect the company to earn 23 cents per share in the fourth quarter, excluding one-time items, according to a poll by Reuters Research.

But Ingram Micro said in a news release that its net results for the fourth quarter were likely to vary significantly from that outlook because of “major-program costs related to the profit-enhancement program, announced on Sept. 18, 2002, and other actions that may be implemented.”

In September 2002, Ingram Micro announced a major restructuring program aimed at improving its profits by 2004.

The program, which it said would include layoffs and consolidation of distribution facilities, was expected to provide an additional $160 million in operating income by 2004.

It also said at the time that over the next six quarters the program would cost $140 million, or $88 million after taxes, to implement.

The company could not immediately be reached.

Shares closed up 12 cents at $14.70.