Dell Products' pre-tax profits surge by 78pc despite fall in PC sales
PRE-TAX profits at the main Irish subsidiary of US computer giant Dell jumped 78pc to $10.9m (€8m) last year, despite the slump in PC sales.
New figures show that Dell Products enjoyed the increase in profits in spite of sales decreasing by 9pc to $11.9bn in the 12 months to the end of January. (The prior year was for a 53-week year).
The Dublin-based firm employs 1,000 and last year paid out a dividend of $202m.
The subsidiary's principal activity is the sale and distribution of Dell products in the European, Middle Eastern and African (EMEA) markets.
According to the directors' report, the drop in turnover "was primarily driven by a decrease in revenue from our customer segments, though all of our segments experienced declines in revenue".
The directors state: "These declines were due to weak global economic conditions, competitive pricing dynamics and increased competition from alternative mobile devices.
"These dynamics particularly impacted demand for our client products. The challenges in our client business were partially offset by increases in revenue from enterprise solutions and services. We expect the challenging environment in 2013 to continue into 2014."
The cost of sales increased from $11bn to $01bn, with the distribution costs decreased from $1.64bn to $1.49bn.
The company has its registered office in Dublin, though the directors state that the books of account are kept at Dell's plant at the Raheen industrial estate in Limerick.
The accounts show that on February 1, the company had $102m in shareholder funds, including $15.3m in accumulated profits.
A breakdown of the company's turnover showed that 98pc of Dell Products sales were recorded in Europe with the remainder for 'rest of world'.