Dell's Irish operations contribute to group's record second-quarter figures

Dell, the personal computer company with 4,200 employees in Limerick and Dublin, last night reported record second-quarter profits and revenues. The firm's Irish operations saw continued success, both in exporting to the rest of Europe and domestically, where the brand maintained its position as market leader.

Dell said revenue for the three months to the end of July reached $6.1 billion (€5.8 billion), a rise of 42 per cent on the previous year's quarter. Net profits soared 47 per cent to $507 million (€482.6 million).

In Europe, where all the company's products are manufactured and shipped from Limerick, Dell said its revenue climbed by 24 per cent, more than double the average increase for the industry.

The company's sales director, Mr Tim McCarthy, said last night he was delighted with the performance of the operations in the Republic, and drew attention to the work of his sales team in Bray: "Much of our work in Bray is focused on the UK market as well as Ireland and, for the first time ever - according to independent research - we are number one in the UK."

He said the company had maintained its position as market leader in the Republic, with a share of more than 27 per cent.

Earlier this year, Dell said it would bring its Irish workforce to 5,000; Mr McCarthy said last night the payroll was now more than 4,200 and the company was still recruiting.

The firm's chairman and chief executive, Mr Michael Dell, said it was now the largest direct company within the worldwide home and small-business market, and was significantly more profitable in that segment than its nearest competitor.

"Our US consumer shipments grew more than 100 per cent in the quarter, and about one-half of those sales were generated online, through www.dell.com," he add ed. "The Internet is central to further extending the distinctive competitive advantages of the company's direct business model."

In the last month of the quarter, Internet sales reached $30 million per day, representing nearly 40 per cent of company revenue and an $11 billion annualised run rate. Its robust earnings, growth and "superior asset management" helped it achieve a record return on invested capital of 260 per cent, the company added.

Dell said Toyota Motor Sales USA, Boeing and First Union were among major customers which selected it for their computing needs during the quarter.