PC giant Dell sees profits fall
The world's largest maker of personal computers, Dell, has reported a fall in third-quarter profits after taking a charge to repair faulty parts.
Dell reported net income for the three months to 28 October of $606m (£346m), down from $846m a year ago.
The firm took a one-off charge of $442m which included $300m for repairing faulty parts in business machines.
Earlier this month Dell said sales had missed forecasts amid weaker demand for PCs in the US and UK.
Sales for the quarter were $13.9bn, compared with forecasts of nearer $14.1bn.
Not good enough?
Dell has been cutting costs as it seeks to head off tough competition from rivals such as Hewlett-Packard.
"Our operating performance was again exceptional by any comparable measure," said Dell's chief executive Kevin Rollins.
"However, we hold ourselves to higher standards," he added.
The company said its fourth-quarter revenues should come in between $14.6bn and $15bn, with earnings per share between 40 and 42 cents.
The fall in third-quarter profit had been expected by analysts, and shares in Dell rose nearly 1% in after-hours trade to $29.42.
Story from BBC NEWS:
Published: 2005/11/10 21:51:21 GMT
© BBC MMV
The world's largest maker of personal computers, Dell, has reported a fall in third-quarter profits after taking a charge to repair faulty parts.
Dell reported net income for the three months to 28 October of $606m (£346m), down from $846m a year ago.
The firm took a one-off charge of $442m which included $300m for repairing faulty parts in business machines.
Earlier this month Dell said sales had missed forecasts amid weaker demand for PCs in the US and UK.
Sales for the quarter were $13.9bn, compared with forecasts of nearer $14.1bn.
Not good enough?
Dell has been cutting costs as it seeks to head off tough competition from rivals such as Hewlett-Packard.
"Our operating performance was again exceptional by any comparable measure," said Dell's chief executive Kevin Rollins.
"However, we hold ourselves to higher standards," he added.
The company said its fourth-quarter revenues should come in between $14.6bn and $15bn, with earnings per share between 40 and 42 cents.
The fall in third-quarter profit had been expected by analysts, and shares in Dell rose nearly 1% in after-hours trade to $29.42.
Story from BBC NEWS:
Published: 2005/11/10 21:51:21 GMT
© BBC MMV
