Originally posted on February 28, 2009 @ 5:30 am
Even top PC manufacturer Dell is feeling the global economic crunch as it reported steep declines in its profits.
The company reported a drop in its quarterly sales and profit resulting in a 3 percent drop in its shares last Thursday.
The global number 2 PC maker reported that its net profit for the fourth quarter ending January 30 fell to about $351 million, or about 18 cents per share. This is from $679 million, or 31 cents a share, in the same period a year ago.
Removing all one-time items, the profits of the company was 29 cents per share, this is actually above the 28 cent average that was estimated by analysts who were asked by Reuters Estimates. Dell’s revenue dropped by 16 percent to $13.4 billion, which is way below the average forecast of $14.06 billion.
The financial results only means that Dell has an uphill climb to make this year in order to arrest the profit plunge and turn the company around next year.