Dell profits plummet 47%

IT suppliers

Dell profits plummet 47%

Jennifer Scott

Dell’s financials have taken a turn for the worse following a drop in sales of its mobility products.

The company reported a 47% fall in profits when compared with the same period in 2011, recording $475m for the third quarter of its 2013 fiscal year, down from $893m.

Revenues for its global consumer business took the biggest hit, falling from over $3.2bn last year to under $2.5bn for the past three months.

Sales of servers and networking products remained stable, as well as its services business, but mobility revenues tumbled by over $1.2bn year on year and PC sales dropped by $300m.

Dell chief financial officer Brian Gladden said there was a “difficult global IT spending environment” at the moment, but claimed the company had seen “solid proof points that demonstrate progress in our strategy”, namely in the server and networking business.

The company’s namesake and CEO, Michael Dell, added: “We are consistently executing our end-to-end solutions strategy for the benefit of our customers.” 

Dell’s outlook for the next quarter was also pessimistic. A statement from the firm read: “Dell sees the challenging global macro-economic environment continuing in the fourth quarter, which will continue to impact the company’s results.”

It predicts sequential growth of between 2% and 5% for the next quarter and its overall annual goal remains at $1.70 in earnings per share.

The statement concluded: “Going forward, the company is committed to its end-to-end solutions strategy and creating value over the long term.”

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