Dell Q4 profits down 6pc, despite sales rise


19 Feb 2010

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Dell has reported a 6pc fall in profits during the final three months of its 2009 financial year, although the US computer manufacturer’s results still managed to beat market expectations.

Despite an increase in sales, low profit margins hit Dell’s earnings. Fourth-quarter profits were US$334 million, down from the US$351 million reported a year previous.

Revenue during the three months to 29 January was up 11pc during the fourth quarter to US$14.9 billion compared to the same period in 2008.

Dell said revenue in all of its business segments improved, thanks to the company having consolidated results from its US$11.8-billion acquisition of Perot Systems for the first time.

The computer-manufacturing giant said it saw demand in its important commercial business continuing to return during the fourth quarter, adding that it was cautiously optimistic this trend will continue into 2011.

“We achieved solid revenue growth in every part of our business. Our commercial units are well poised for profitable growth as demand continues to return because we’re meeting customer requirements for higher-value, higher-margin servers, storage systems and services,” said Dell’s chief financial officer Brian Gladden.

Dell’s figures come one day after its rival Hewlett-Packard reported a 25pc rise in net profit during its first quarter.

Article courtesy of Businessandleadership.com

Photo: Dell’s fourth-quarter profits were US$334 million, down from the US$351 million reported a year previous