Bell laments 34 per cent drop in European sales

Bell has revealed that its European revenues for Q4 2008 plummeted by 34 per cent

The weakening pound and bleak economy took their toll on Bell Micro's European performance in its fourth quarter as revenues from the region plunged 34 per cent.

According to its preliminary Q4 and annual revenue statement, the distributor saw total revenues for the three months to 31 December sink 28 per cent to $782m on an annual comparison.

Full-year sales fell 10 per cent to $3.65bn.

Bell, which recently completed its revenue restatement process for 2004, 2005 and 2006, admitted the drop in revenues was sharper than expected in each geographic arena.

European revenues nose-dived 34 per cent on an annual comparison and nine per cent sequentially. For the full year, European revenues dropped 14 per cent.

European components and peripherals sales fell 37 per cent, while solutions product revenue fell 32 per cent.

Bell’s chief executive Don Bell said the results were disappointing, but not unexpected, citing the depressed global economy and recent currency fluctuations.

He said: “We took steps in the fourth quarter to manage our cost base and achieved a seven per cent reduction in overheads that is expected to provide savings of approximately $22m per year. We will continue to take actions as necessary to reduce costs in future quarters.”

Disk drive sales were particularly weak, he said.