Ingram Micro sees 3Q adjusted profit below Street

SANTA ANA, Calif. (AP) ? Technology products distributor Ingram Micro Inc. on Monday predicted third-quarter adjusted earnings lower than what analysts expect, citing decreased demand in Europe and slower-than-anticipated sales in Australia since it transitioned to a new business management system there.

Ingram shares sank 11 percent in after-hours trading.

For the quarter that ended Oct. 1, Ingram Micro expects to report 13 to 15 cents per share in net income, or 32 to 34 cents per share excluding 19 cents per share in charges stemming mainly from a write-down on its business in Brazil. On that basis, analysts surveyed by FactSet have been looking for adjusted earnings of 41 cents per share.

The company, which reports its third-quarter results on Oct. 27, believes sales for the period will total $8.9 billion. This would match analyst expectations.

Ingram shares fell $2.12, or 11.3 percent, to $16.60 in after-hours trading. The stock had finished regular trading down 38 cents, or 2 percent, at $18.72.