Dell expects 'further softening' in IT demand

17 Sep 2008 07:55

Having recently reported a decrease in second-quarter profits, Dell has warned investors of further decline in global end-user demand

Dell warned investors on Tuesday that it expects to see "further softening in global end-user demand in the current quarter".

The statement comes a month after Dell reported a decrease in second-quarter profits.

Dell didn't give specific financial details but said it expects to incur costs as it realigns its business. The company said it is "committed to working aggressively on cost initiatives" designed to generate improved growth, profitability and cash flow.

Last month, Dell reported that second-quarter profits were down 17 percent year-over-year to $616m (£345). The company posted earnings of 31 cents per share, missing analysts' expectations of 36 cents per share. At the time, the company said conservative IT spending in the US had spread to Western Europe and several countries in Asia.

Dell executives will address investors at a Bank of America conference on Tuesday in San Francisco.

The announcement comes a day after HP announced it will eliminate tens of thousands of jobs over the next three years, and as the stock market reeled from news of major troubles at US financial institutions.

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