Dell 4Q profit declines on slower growth

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Dell, the world's No. 2 PC maker, promises an aggressive cost-cutting campaign — that means more layoffs on top of the 3,200 jobs already eliminated in the past year — to boost profits.

And it is counting on growth in emerging markets to offset softness in the United States, where customers such as financial-services firms are reining in spending on technology.

"I wouldn't be surprised if the U.S. is our slowest-growing region certainly for the next couple of quarters, given what we see going on in the economy," said founder and Chief Executive Michael Dell.

The company said Thursday that its fourth-quarter profit dropped 6.4 percent, to $679 million or 31 cents per share, in the quarter ended Feb. 1. That included several one-time expenses totaling 7 cents per share and gains of 4 cents per share.

Analysts surveyed by Thomson Financial had predicted a profit of 36 cents per share. A year ago, Round Rock, Texas-based Dell earned $726 million, or 32 cents per share.

Sales rose 10.5 percent to $15.99 billion, but that was below the $16.27 billion that analysts had expected.

Dell shares rose 10 cents to close at $20.87 before the report was released. In after-hours trading, they fell 32 cents, or 1.5 percent.

Chief Financial Officer Donald Carty said in an interview that the company had restored growth in key areas, including notebook computers — where revenue rose 24 percent — and emerging markets. Revenue was 36 percent higher in Brazil, Russia, India and China.

Dell built its business by selling computers directly to companies and consumers on the phone or over the Internet, but now it's selling through retailers including Best Buy Co., Wal-Mart Stores Inc. and Staples Inc.

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