Dell blames stingy Europeans for Q3 droopy sales figures

Might fail to hit full-year 30 per cent growth target

By Linda Harrison in New York • Get more from this author

Posted in Business, 14th October 2000 08:45 GMT

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Mighty Dell warned analysts yesterday that Q3 sales would be three per cent less than expected thanks to Europeans not buying enough of its products.

The Round Rock, Texas PC maker also blamed sluggish sales to small business customers.

The revised projected revenues for the quarter ending November 4 were $8.2 billion, up 27 per cent on the previous year, but still bobbing below the original $8.5 billion forecast.

If this trend continues into the fourth quarter, full-year sales are expected to reach $32 billion, a 27 per cent increase. Analysts were hoping for at least 30 per cent growth.

Dell said it was on track to meet expected profits for this quarter, but that next quarter earnings per share could fall one or two cents below its target.

Third quarter sales are up seven per cent on the second quarter which Dell said was in line with rivals. Orders from corporates, schools and individual PC customers and within Asia Pacific and Japan were still strong, and profit margins were fine thanks to cheaper than expected components, it added.

Dell is not the only company to blame Europe for its financial woes. Last month Intel issued a profits warning for Q3 citing the same reason.

Dell also missed sales estimates in Q2. ®