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Mixed results for C2000 parent company as currency fluctuations hit revenues and profit

Tech Data warns of difficult Q1

Tech Data has warned investors that current quarter sales may down by as much as a fifth due to falling demand and the weakening dollar, as it detailed its Q4 results.

Sales were down by five per cent year-on-year, but due to global currency fluctuations, the drop was 11.9 per cent, causing revenues to hit $6.5bn (£4.6bn).

The firm warned in its statement to the markets that the situation was likely to get worse. "In light of the current macro-economic environment and the related decline in IT spending, combined with the strength of the US dollar against certain foreign currencies, first-quarter net sales for the period ending April 30th are anticipated to be down by as much as 20 per cent year-over-year."

Despite that, the firm saw a profit of $123.6m (£87.9m) for the year on revenue of $24.1bn (£17.1bn), as it managed to gain market share from rivals and improve margins in both America and Europe.

In Europe, which houses its Computer 2000 division, profits nearly doubled to $63.6m (£45.2m), but sales remained flat in local currencies and dropped 10.3 per cent in dollars.

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