A leading high-tech employer earned almost $160 million (€120 million) in profits from its manufacturing operations in the Republic during its 2004 financial year, the latest figures show. Barry O'Halloran reports.
Turnover at Limerick-based Dell Products grew 20 per cent in the year to the end of last January to $7.9 billion from $6.3 billion in 2003, according to the latest return lodged with the Companies' Registration Office (CRO).
Dell is one of the State's top five companies by turnover. It employs 3,000 people at its manufacturing base in Plassey, Co Limerick. The operation produces computers that are sold in the European, Middle East and African markets.
Accounts lodged with its annual return show that its operating profits for the period grew 13 per cent to $122 million from $108 million last year
Year-on-year growth in operating earnings did not keep pace with the expansion in sales largely because administrative and distribution costs rose by 25 per cent to $873 million.
However, the company got a net interest boost of $60 million, which left it with pre-tax income of $182 million compared with $165 million in 2003.
Profit for the financial year after tax came to $157.5 million, 18 per cent ahead of 2003, when it stood at $133 million. This left Dell with $557 million in shareholders' funds, compared with $400 million in 2003.
Dell Products' ultimate owner is the publicly-quoted US giant Dell Incorporated, which owns Dell Products through a Dutch subsidiary.
The Irish firm's balance sheet shows that at the end of January, net assets were $562 million, against $402 million last year.
Total assets were $5.1 billion, up almost 40 per cent on the 2003 figure of $3.7 billion. The increase was largely due to growth in short-term investments, which were up over 50 per cent to $3.2 billion from $2 billion. The accounts do not detail what the investments were. Dell had $300 million in cash.
A separate company, Wicklow-based Dell Direct, which provides sales, after-sales and telemarketing services on a commission basis to the Limerick company, has also made its return.
This shows that it had profits of €12 million on sales of $103 million in the year to the end of January.
The comparable figures for 2003 were €9.7 million and €99 million respectively.
Dell Products' accounts show that it sold $568 million worth of computer equipment to other companies within the group, but they do not indicate if any of those sales were to Dell Direct.
News of both companies' strong performances in the Republic comes shortly after the group announced that it was moving its sales and marketing operations in Bray, Co Wicklow, to Cherrywood in Dublin, and hiring an extra 400 workers.
That would bring the total number employed there to 1,650, and bring the numbers working for the group in the Republic to 4,650.
Worldwide, Dell this month reported that it had sales of $12.5 billion in the three months to the end of October, and profits of $848 million.
Turnover for the first nine months of its fiscal year was $35.7 billion, while net income was $2.3 billion. Earnings per share for the nine-month period were 92 US cents.
