By Ron Coates, 24 January 2001 11:50
NEWS But for 2000 as a whole, profit stood at $1.7bn on turnover of $42bn. For the final quarter, the company made sales of $11.5bn. The company expects to grow 20 to 25 per cent next year, despite predicting a difficult first half-year. Michael Capellas, CEO of Compaq, said: "In summary, revenue was up 10 per cent, gross margin was up 1.5 percentage points, operating expense was down a full percentage point and operating profit was up 80 per cent. It's all about profitable growth." The company issued a profit warning back in December, and has reached its revised targets. It had also previously announced that it would take a $1.8bn charge on its stake in internet incubator CMGI. Compaq's 16.4 per cent stake was worth $2bn when CMGI shares were $150 - they are currently around $6.50. Consumer PC sales were weak, but these make up only 20 per cent of Compaq's sales. It reported 20 per cent growth in server sales and strong enterprise sales. European turnover was up 22 per cent when rated in European currencies and three per cent in dollars.
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