Bell Micro to trim 'disappointing' European ops
'Shortfall in sales and profits'
Bell Microproducts is to wield the axe on its European operations, following a "shortfall in sales and profits". The computer distie expects to take a pre-tax charge of between $7m and $12m to cover restructuring costs over over the next few quarters.
European sales fell 13 per cent year-on-year in the third quarter ended September 30, compared with a 17 per cent jump in revenues for North America,, and 28 per cent jump in Latin America. Net revenues for the quarter will comin at around $760m (Q3 04: $729m).
The company says that OpenPSL, its UK mid-range server distribution, continued to produce good results. But added Don Bell, the CEO, "we are clearly not pleased with our European and overall performance in the third quarter of 2005. We were disappointed in the performance of our Ideal Hardware division in the United Kingdom and our continental European operations."
Bell Micro is currently working through the numbers for its re-org, but it is set to junk lower margin product sales. By concentrating on higher-margin value-adds, the company believes it can create a “stronger differentiated business in Europe as we have in North America”.
Press release here. ®
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