CFO Grainger Named Ingram President

Ingram Micro Inc., the world’s biggest computer distributor, said Thursday it has promoted chief financial officer Michael Grainger to president and chief operating officer, where he will run Ingram’s global operations.

Ingram said it has begun a search for a new chief financial officer. Grainger will stay on as CFO until a replacement is named, Chief Executive Kent Foster said.

Grainger said he will concentrate on “profitable growth, and not growth for growth’s sake.” To do that, he said, he will focus on managing the Santa Ana-based company’s gross margin, an area in which analysts say he has already proved himself.

“They’ve had a Herculean gross margin turnaround the last couple quarters, and I think he gets a fair amount of credit for that,” said analyst David Childe of Morgan Keegan & Co.

Ingram increased its gross margin to 5.13% in the third quarter from 4.7% in the first quarter of 2000. “That’s unheard of in this industry,” said Kim Strohm, Ingram’s vice president of investor relations.

Grainger said his other focus will be to boost sales. “This is a business where size is vitally important, and being the largest distributor in a particular marketplace gives you a lot of advantages,” he said.

Ingram’s five regional presidents will report to Grainger, who will in turn report to Foster, who became chief executive in March.

Childe said Grainger’s promotion indicates Ingram is on track to release another strong quarter. “It probably means the numbers are coming through nicely, he said. “Otherwise, why promote the guy in charge of the numbers?”

Ingram shares rose 94 cents to $12.19 on the New York Stock Exchange.