Shares in Compaq Computer, which employs 2,200 people in Dublin, Galway and Belfast, and is the second-largest manufacturer of personal computers in the world, fell sharply in early trading on the New York despite reporting fourth quarter profits ahead of expectations. Analysts said that the fall in the share price was mainly due a decline in sales in the quarter.
Sales in the fourth quarter totalled $10.5 billion, down 4 per cent on fourth quarter 1998. Net income in the period totalled $332 million against $758 million in the same period.
For the full year, sales at Compaq rose 24 per cent to $38.5 billion while the company moved from the €2.7 billion loss in 1998 to profits of $569 million in 1999.
"During the second half of this year, we took aggressive action to return Compaq to profitable growth, and fourth quarter results reflect our initial success where it matters most - in the marketplace," said Compaq president and chief executive officer Mr Michael Capellas.
"During the fourth quarter, we made great strides in defining a clear strategy," he said, adding: "We upped the pace in launching new innovative products, signing strategic partnership deals and alliances and securing major customers wins.
"We do not underestimate the challenges ahead, but are confident of our strategy and we are committed to accelerating our progress and delivering steadily increasing value for our shareholders."
