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Dell net profit drops 48 percent

Posted on Friday, February 27 2009 @ 19:28:37 CET by

CNET reports Dell's profit sank 48 percent in the fourth quarter of 2008.
The PC maker reported fourth-quarter revenue of $13.4 billion Thursday, a 16 percent drop from $15.9 billion reported the same quarter a year ago. Dell's profit for the quarter totaled $351 million, or 18 cents per share, compared to $671 million and 31 cents per share the year before. That's nearly a 48 percent drop in profit. Analysts had been anticipating earnings per share of 26 cents.

Dell had reported last month it would be forced to take a pre-tax charge of $280 million, or 11 cents per share, related to cost-cutting and restructuring measures taken during the quarter.

The company continued to cite the "challenging" global environment and the reduction in IT spending by large corporate customers, a segment in which Dell is heavily invested.



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