News Column

Dell Earnings Plummet Year Over Year

August 15, 2013
dell computer
Dell laptop (file photo)

Computer giant Dell's quarterly earnings fell 72 per cent compared to the second quarter in 2012, to 204 million dollars, the company said Thursday.

The decline in personal computer sales has eroded profits, while revenues were little changed from a year earlier at 14.5 billion dollars.

The report comes as the company's founder, Michael Dell, tries to take back ownership of his company with a takeover valued at almost 25 billion dollars.

After several postponements, the Dell board has agreed to a new offer and scheduled a shareholders vote for September 12. But some large stockholders, led by the billionaire takeover specialist Carl Icahn, are pushing for a higher price.

The slump in the personal computer market has eroded Dell's earnings. Private customers are changing to tablet computers or simply using their smart phones instead of buying a new laptop.

Corporate sales however have remained strong.

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Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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