More business news in brief.
Dell reports 17% quarterly profit decline
Computer manufacturer Dell, which employs more than 4,000 staff in Ireland, reported a surprise 17 per cent decline in quarterly profit yesterday as it suffered from tighter corporate spending in the US, sending its shares down 8 per cent.
Net income for the fiscal second quarter to August 1st fell to $616 million (€419 million), or 31 cents per diluted share, from the restated year-ago net income of $746 million, or 33 cents per diluted share.
Revenue rose 11 per cent to $16.43 billion.
Dell shares in the US tumbled to $23.20 in extended trade, after closing down 42 cents at $25.21 on the Nasdaq. - (Reuters)
US economy grows faster than expected
Stocks rallied yesterday after data showed the US economy grew much faster in the second quarter than first reported, boosted by strong international trade.
Economists had predicted gross domestic product (GDP) growth for the second quarter of 2.7 per cent, up from the government's initial estimate of 1.9 per cent in July. But thanks to stronger exports and healthier business inventory figures, yesterday's revised figure rose to an annualised rate of 3.3 per cent.
Toyota cuts sales forecast by 7%
Toyota Motor yesterday cut its 2009 sales forecast by 700,000 vehicles, about 7 per cent, as it acknowledged that the downturn in the US car market would last at least until the end of next year.
It now expects to sell 9.7 million cars and trucks worldwide next year.
Toyota said there had been a "structural change" in demand in the US as the high cost of fuel pushed customers away from large vehicles, suggesting lower sales in those segments would continue beyond the downturn. It said it would bring forward the launch of a petrol-electric hybrid.
Sterling-euro rate nears record low
Sterling dropped to within touching distance of a record low against the euro as the outlook for the UK economy continued to deteriorate.
Data from Nationwide Building Society showed UK house prices fell 1.9 per cent in August. This was the 10th consecutive monthly decline and took the annual drop in house prices to 10.5 per cent, the largest fall since the data series began in 1991.
The Confederation of British Industry said UK retail sales plunged to their lowest level in 25 years in August.
By midday in New York, the pound was down 0.3 per cent at £0.8048 against the euro, having hit a low of £0.8060 during Asian trade.
Ombudsman's new complaints process
The Financial Services Ombudsman has published revised complaints procedures following the High Court's judgment in the Davy stockbrokers/Financial Ombudsman case of July 30th, 2008.
The ombudsman will initiate a mediation procedure once it has received a complaint form and final response letter from the financial service provider involved in the case, and both parties will be invited to participate in the process.
If mediation is not availed of or is unsuccessful, then a formal investigation by the ombudsman will begin.
The ombudsman's finding is binding on both parties, and can only be appealed to the High Court. Previously, cases could be appealed to the ombudsman.
INM results correction
Yesterday's item on interim results from Independent News Media incorrectly stated that current forecasts imply a reduction of 17.5 to 18 per cent in the company's adjusted earnings per share (eps) for the full year. In fact, market consensus forecasts imply a 4.3 per cent reduction in adjusted eps to between 17.5 and 18 cent per share.
