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Dell's First-Quarter Results Particularly Strong Outside U.S.; Company Forecasts Higher Revenue Growth in Second Quarter
Posted by Donald A. DePalma on May 12, 2005  in the following blogs: Business Globalization
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We still get asked "why globalize?" The answer is short -- market growth you won't find at home. Dell's first-quarter 2005 profit rose by 28% driven by sales of PCs and higher margin storage products and services outside the United States that grew 21%. Dell's non-U.S. sales now account for 42% of its total revenue. Revenue in Europe and Asia increased by 20% vs. 16% in the U.S.

This rise shows the value of international markets to U.S. companies looking for growth -- and validates International Monetary Fund (IMF) estimates. Last year the IMF predicted that world output would increase 4.4% in 2005, down slightly from 2004?s 4.6%. It predicted U.S. economic growth this year will slow to 3.9%. Translation? U.S. firms can expect profits from non-American operations to grow 10-15% (roughly $30-45 billion). Combined with the cheaper dollar, that puts globally savvy U.S. companies in a good export position.

 

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