Tech Data has been doing reasonably well but is seeing some dark clouds on the horizon over the thinks like Trade Wars and Brexit.
The distie delivered a two percent increase in net sales to $9.1 billion year-on-year and net income improved by four percent to $79.3 million. The performance in Europe was down year on year with net sales falling by two percent to $4.4 billion, and as a percentage of worldwide sales, the region dropped from 51 percent to 49 cash flow. The firm reported that servers, software, networking, and PCs, along with security, were the segments that appealed to customers.
Speaking on a post-results webcast, the Tech Data CEO Rich Hume said that his strategy was working and the company had been able to keep the revenues coming at the same time as making a shift upstream.
“We summarise our strategy as moving to a higher value. This means delivering higher-value solution offerings to our channel partners, providing colleagues with enriching opportunities and providing value for our shareholders through an enhanced financial profile with emphasis on cashflow and return on invested capital. Our Q2 performance validates our strategy”, he said.
“Our channel partners are responding favourably to our solutions-based approach, enabling us to win new business every day”, he added.
He warned that there were a few clouds on the horizon and only a brave CEO would ignore the potential problems that an ongoing trade war or Brexit might cause. But Hume said that focusing on its strategy would be its on-going approach in the second half.
