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Profits Slide as Dell Streamlines

6.5% drop on consumer slump, 'slow as molasses' turnaround

By Rob Quinn, Newser Staff

Posted Feb 29, 2008 6:30 AM CST

(Newser) – Dell posted a 6.5% decline in profits for its fiscal fourth quarter yesterday, citing slowed consumer spending and the cost of restructuring, which included slashing thousands of jobs, the Wall Street Journal reports. The Dell results are likely to cause concern about other tech stocks—especially those that rely on the US consumer market—and doubts about Dell's ambitious turnaround plan.

"The pace of the turnaround is as slow as molasses," an analyst said. "They are showing some progress but it's taking a lot longer than I would have expected." The company, once the biggest PC seller in the world, saw its share price drop following the results.

A Dell computer is seen on display at the Dell booth at the Consumer Electronics Show in Las Vegas, Jan. 9, 2008. Dell released its quarterly earnings Thursday, Feb. 28, 2008. (AP Photo/Paul Sakuma) (Associated Press)

Dell CEO Michael Dell speaks at Oracle Open World conference in San Francisco in this Nov. 14, 2007 file photo. AP Photo/Paul Sakuma, file) (Associated Press)

Shoppers examine Dell computers at Best Buy Wednesday, Feb. 27, 2008, in the Atwater Village section of Los Angeles. Dell released its quarterly earnings Thursday, Feb. 28, 2008. (AP Photo/Ric Francis) (Associated Press)

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Profits Slide as Dell Streamlines

6.5% drop on consumer slump, 'slow as molasses' turnaround

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More Newser Stories

Downturn Derails Dell's Turnaround

Cost-cutting kills off plans for flashy new product lines

Wal-Mart, You're Getting a Dell

Direct-to-consumer giant will get in-store presence at big-box superstar

Groupon Posts $42.8M Loss

First results since IPO disappoint investors

Dell's Tweets Bring $6.5M in Sales

Company now has 1.5M followers on Twitter

Johnson & Johnson to Slash 8,700 Jobs

Company says moves will save up to $900M annually

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Profits Slide as Dell Streamlines

6.5% drop on consumer slump, 'slow as molasses' turnaround

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OTHER STORIES ON OUR RADAR

Dell • Michael Dell • restructuring • tech stocks • tech sector • job cuts • computer • quarterly results

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Downturn Derails Dell's Turnaround

Cost-cutting kills off plans for flashy new product lines

Wal-Mart, You're Getting a Dell

Direct-to-consumer giant will get in-store presence at big-box superstar

Groupon Posts $42.8M Loss

First results since IPO disappoint investors

Dell's Tweets Bring $6.5M in Sales

Company now has 1.5M followers on Twitter

Johnson & Johnson to Slash 8,700 Jobs

Company says moves will save up to $900M annually

About Us

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Newser By Users

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