Pre-tax profits at Dell subsidiary halved despite revenues of €13bn
Pre-tax profits at the main Irish subsidiary of US computer giant Dell more than halved last year to $6.1 million (€4.8 million) in spite of revenues topping $13 billion (€10.2 billion).
In accounts just filed to the Companies Office by Dell Products, they show that pre- tax profits fell from $12.6 mil- lion to $6.1 million in the 53 weeks to the end of February 2012. This came in spite of revenues at the firm last year increasing by 5 per cent, from $12.3 billion to $13 billion.
Sales by the Dublin-based firm represent 20 per cent of Dell's worldwide revenues of $62.1 billion last year. The subsidiary's principal activity is the sale and distribution of Dell products in the European, Middle East and African markets.
Cost of sales increased from $10.6 billion to $11 billion last year with distribution costs increasing from $1.4 billion to $1.64 billion. Administrative expenses declined from $350 million to $340 million.
The company had $292 million in shareholder funds, including $208.5 million in accumulated profits. The numbers employed increased from 796 to 953.
Filings for a second Irish subsidiary, Dell Direct, show that pre-tax profits grew by 42 per cent, from €7.8 million to €11.1 million last year.