Tech Data sells Chile, Peru operations

CLEARWATER — Tech Data Corp. says it has completed its sale of divisions in Chile and Peru to Ingram Micro, and will leave Uruguay next.

Terms of the deal were not disclosed.

The Clearwater technology wholesale distributor, which trades on the Nasdaq under the symbol TECD, says the sale will allow it to refocus its efforts on expanding its Latin American export business in Miami, as well as existing operations in Mexico. Eduardo Coronado leads operations in that country now, which Tech Data says has a more developed information technology market.

“Over the course of 16 years of operating in Chile, Peru and Uruguay, it has been difficult to achieve the necessary scale to consistently generate acceptable levels of profit and return on invested capital,” says CEO Robert Dutkowsky, in a release.

Tech Data reported net sales Thursday for the quarter ended Jan. 31 at $7.3 billion, compared to $8 billion the year before. That created a net income of $74.9 million, or $1.96 per share, compared to $80.4 million, or $2.10 per share, the year before.

The news so far seems to be well received by investors; shares closed slightly upward at 1.5% Wednesday, finishing at $57.33 in above-average trading. Tech Data shares have been valued as high as $71.31 this past year.

Tech Data also announced this week it appointed Pete Peterson to senior vice president of business development, and Marty Bauerlein to senior vice president of domestic sales.

Peterson, who has been with Tech Data since 1996, will be responsible for bringing in new vendors to the company, while Bauerlein -- a Tech Data employee since 2004 -- will focus heavily on American resales.