Profit Dell was reduced to 63 %, the worst can be ahead

The net profit of the second-large manufacturer of computerw of the company for the first quarter 2010 which has come to the end on May, 1st, has decreased on 63 % to $290 million against $784 million received for the similar period on year before. The profit in recalculation on the action has made 15 cents. Except for single expenses (including on re-structuring) the profit on the action has made 24 cents, on one cent above forecasts of the analysts interrogated Thomson Reuters. One year ago the net profit has made 38 cents on the action.

The gain for the accounting period was reduced to 23 % and has reached $12,3 mlrd in comparison with $16,1 mlrd, received year before. In comparison with the fourth quarter 2009 (November-January) the gain was reduced to 8 %. The gain has appeared below forecasts.

According to official representatives of the company, for the present early to say that the deepest recession of sales already behind. Astable economic conditions do not allow to do such forecasts. Nevertheless, in Dell do not give up hope and nexxt quarter situation improvement wait.

The best results during accounting period Dell could achieve in Asia, the president of division Dell on release of products for small and average business tells. Steve Felis. (Steve Felice). On Asian-Pacific region, including Japan, it was necessary about $2 mlrd all gain. While gain Dell from world operations was reduced to 23 %, a gain from activity in the given region – on 20 %.

Michael Dell hopes on Windows 7, but does not exclude the worst succession of events.

Dell connects decrease in financial indicators, mainly, with falling of demand for computers among business clients whom leaves about three quarters of production vendora. Other part – to consumers. For February, March and April of sale of desktop computers Dell were reduced to 34 %, mobile – on 20 %. The founder of the company and its main chief executive (Michael Dell) rests hopes on Windows 7, believing that after an exit in 2010 this operating system will urge on demand for new computers. Stock value Dell in August has reached record for previous 52 weeks of an indicator in $25,63.

However after that the course fell to $8 for a piece. At the moment of closing of the auctions on Thursday, on May, 28th, the company stock value at stock exchange NASDAQ has made $11,48 for a piece. After the publication of the financial report the course has grown to $11,6. In the beginning of year Dell has informed on reduction of 1,9 thousand employees in Ireland.

The given measure is caused by the decision to translate capacities from Ireland to Poland, where costs on manufacture more low. Dell continues to cut expenses. Only in the first quarter operational costs were reduced to $312 million in comparison with a last year's indicator, the main financial director Dell informs. Bryan Gladden. (Brian Gladden). As of the end of April at the disposal of Dell there were $9,7 mlrd cash. About weeks ago about results of the second quarter 2009 (has ended on April, 30th) the company has reported. Its net profit of $1,7 mlrd – on 17 % is less in comparison with the similar period of last year ($2,1 mlrd).

HP – the largest manufacturer of personal computers in the world. To the company belongs 18,1 % of the world market, Dell – 14,7 %.

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