29-02-2008
Below-expectation profits announced by Dell
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Computer manufacturer Dell has announced lower than expected profits.
Over a period of three months to February 2008, the firm has reported a net income of £340 million after a six per cent fall. Although Dell is now selling hardware through retail outlets - a move which failed to improve profits - there are concerns that the stagnation of the US economy will negatively affect sale levels.
"While Dell continues to drive towards world-class cost structure and competitiveness we have much work to do," said Michael Dell, chief executive of Dell, a firm established in 1984 in Austin, Texas.
William Kreher, a representative from investment firm Edward Jones, told the BBC: "Dell's less international exposure versus major competitors holds them back."
Over the last 18-month period, the firm has shed a total of 3,200 jobs. However, the company confirmed that growth is strong in a number of countries, including India, China and Brazil.