Ingram Micro 2000 Annual Report Download - page 5

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Even with this level of net sales growth, we delivered an operating profit increase of 77 percent to
$353 million in 2000.This dramatic improvement shows the power of increasing gross margins to affect
our operating profit. The actions we took advanced the company in its continuous goal to drive profitable
growth and increase return on invested capital.
Our intense focus on reducing working capital needs throughout the year also had a significant
positive effect on our financial results. By turning inventory faster and managing our payables and
receivables to consistent levels, we reduced our debt and interest expense.We decreased inventory 16
percent and cut our total debt — including on- and off-balance-sheet debt — 10 percent from year-end
1999.With our reduced debt and current financing capacity, we are a strong financial ally for customers
and suppliers alike.And, more importantly, we have ample financial resources to support future growth.
Building On Our Strengths
More than two decades of experience have positioned Ingram Micro to set the pace for global IT
distribution. As the industry leader, we offer a broader selection of products and services in more
geographic locations — and deliver them to our customers with more speed and precision — than any
other broad-line distributor.
In 2000, we extended our lead with important advances. The following activities have helped us
enhance our service and efficiency levels while nurturing long-term relationships up and down the IT
industry supply chain:
• Added new products and services to meet the needs of the dynamic, fast-paced IT market
• Expanded our facilities and enhanced them with the latest logistics technology
• Rolled out e-commerce capabilities globally to increase customer service and improve
operating efficiency
• Launched a new division in the United States, IM-Logistics, that allows us to explore new markets
with minimal investment by leveraging our core logistics competency
• Continued to align our business and integrate our processes more closely with our customers
and suppliers
Setting Clear Direction
Ingram Micro’s worldwide executive team (see photo on Page 5) was a key factor in driving our
success throughout 2000. Thanks to their efforts, associate satisfaction and retention improved
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INGRAM MICRO