BrightPoint bosses steer biz to Q2 losses

BrightPoint recorded significant losses for calendar Q2 just as Ingram Micro was preparing to table an offer of $850m for the wireless device and services distie. In results filed last night, the firm turned over $1.27bn (£814m), up three per cent year-on-year for the period ended 30 June. This included $1.14bn from product …

[The Godfather]

Perilous margins

Undoubtedly some house cleaning here but nonetheless, component distribution margin of just over 3% does raise the question of just how far it can drop. Anything generally less than 4% becomes unsustainable on a consistent basis. This is one of the biggest challenges Distribution faces at a time also when incremental volume within broad liners is only achievable through acquisition.

Logistics, at roughly 11% of revenue contributed some 56% of total gross profit.