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Dell warns of profits slump

Antony Savvas

Dell has announced that its third-quarter sales and profits will fall well short of its forecasts, because of lower than expected US and UK consumer sales and a faulty component in its Optiplex desktop PC range.

Dell said it expects sales for the quarter to be around $13.9bn (£8.1bn), down from the previously forecast of $14.1bn (£8.3bn).

The company added that it had also spent an unplanned $450m to address operational issues, including $300m to overcome problems with a faulty capacitor in the Optiplex range of PCs.

Other costs related to this charge include a small number of redundancies and ending certain product lines.

The overall effect of the sales shortfall and the additional operational expenditure will mean that profits for the third quarter to 31 October will slump from previous estimates of up to 41 cents (24p) to only 25 cents (15p).

News of the slide led to the value of Dell’s stock slipping 5%. The results will be officially posted on 10 November.


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