One-off charge pulls back Dell profits

11/02/2005 - 08:09:34
Computer giant Dell today posted sales just short of Wall Street expectations, as profits - excluding a tax-related charge - topped analysts' forecasts.

The company said it took a tax charge of $280m in anticipation of repatriating foreign earnings at a one-time favourable tax rate under the US American Jobs Creation Act.

The company reported net income, excluding the charge, of $947m (€735.7m), or 37 cents per share, in the fourth quarter, which ended January 28. That compares with $749m (€581.9m), or 29 cents per share, a year earlier.

Including the charge, net income fell 11% to $667m (€518.2m). Meanwhile, revenue rose 17% to $13.46bn (€10.5bn) from $11.51bn (€8.9bn).