Dell will double Q2 charge to $700M

Dell Computer said Thursday that it is on track to meet its forecast for the second quarter, but warned that a previously announced charge for job cuts and plant closures would double to about US$700 million.

The U.S. direct seller of PCs had originally said in May that it would take a one-time pretax charge of between $250 million and $350 million to cut up to 4,000 jobs and consolidate facilities.The higher charge will include some write-downs of investments by Dell Ventures, Dell said in a statement.

Revenue for its fiscal 2002 second quarter, which ends on Aug. 3, is expected to be about $7.6 billion, with per-share earnings of $0.16, Dell said. The company added that it believes it is widening its lead as the world's largest PC vendor despite "somewhat softer industry demand."

Dell plans to announce its second-quarter earnings on Aug. 16.

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