Full steam ahead for Dell's plan to expand in Ireland

Dell Computer Corporation, which plans to increase employment in Ireland by 3,000 over a three-year period, has recorded substantial growth in the second quarter of 1998.

On a 54 per cent rise in sales to $4.33 billion (£3.1 billion), net profit grew by 62 per cent to $346 million. Growth rates have been accelerating and it is on course to meet the job targets. Mr Tim McCarthy, sales director of Dell Computer Ireland, said it has already employed an extra 800 staff since the expansion plan was announced earlier this year. The European manufacturing base in Limerick accounts for 25 per cent of world sales. It has had a bumper trading period with sales growth of 77 per cent to $1.1 billion.

Dell also has a facility at Bray, Co Wicklow, and said it has secured the number one position in Ireland, with a market share of 26 per cent through the sale of 50,000 units in the second quarter.

Dell is ranked number one in the US desktop market and number two (after Compaq) in Europe. It said it accounted for more than half of all unit shipments worldwide as it continued its momentum in all geographical regions. "We believe that our performance positions us as number one in profitability, revenue growth and unit growth among major systems companies worldwide," said the chairman and chief executive, Mr Michael Dell.

Dell has increased its already strong liquid position. A further $641 million was generated from operations, bringing its cash, or near cash, to over $2.6 billion.

Gross margins increased from 22.2 per cent to 22.7 per cent. Earnings per share grew by 72 percent from $0.29 to $0.50. Growth was achieved in all geographical areas, but the company does not provide specific figures for the different areas. In the UK, it maintained its number two position and increased its market share by 4.1 percentage points to 15.8 per cent.

Dell also announced a two for one stock split which will be paid in the form of a 100 per cent dividend.