DELL CHIEF ''THRILLED'' AT IRISH TRANSITION - Dell chief executive Michael Dell says “the outlook that we have in our business in Ireland has never been brighter”. He has described himself as being “thrilled” at the transformation of the Irish business since it ceased manufacturing in 2009 with the loss of 1,900 jobs. Mr Dell made his first visit to Ireland this week since the computer maker closed its Limerick manufacturing plant in January 2009. He addressed Dell’s 1,000 staff in Limerick and 1,300 workers at Cherrywood, Co Dublin, as well as meeting major customers at a dinner in Dublin Castle, during his two-day visit. Mr Dell also met Taoiseach Enda Kenny and IDA Ireland chief executive Barry O’Leary at Government Buildings. Speaking to The Irish Times , Mr Dell said the changes in the world’s second-largest PC maker’s Irish operations mirrored broader changes in the group, which employs more than 100,000 people worldwide. “If you look at the last four quarters, our earnings per share are up 83% year over year,” Mr Dell said. “That’s a pretty significant improvement, certainly in today’s economy, and indicative of the higher value our teams here in Ireland are delivering to customers.” He said his company had also shut factories in the US as part of its drive into selling higher-margin services and more complex products to its customers. Mr Dell said IDA Ireland and other State agencies “continue to do a great job” selling Ireland to foreign investors. “The other country that is great at that is Singapore.”
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EIRCOM TO UNDERGO OVERHAUL - A "new Eircom" is about to emerge, according to the company’s chief executive who said he is "very confident" the firm will put this period of financial instability behind it and get on a solid footing. The Irish Examiner says that Paul Donovan said operationally the company is getting itself in better shape and is planning to invest €1.3 billion in the next three years. Mr Donovan said that shareholders are talking to bondholders about reducing the debt burden and injecting additional funds into the company. He also said Eircom’s pension fund is now close to break-even as the company froze contributions and placed caps. Mr Donovan, who was speaking at the Irish Examiner Cork Chamber breakfast briefing yesterday, said Eircom’s pension fund is one of the few large defined benefit schemes which is close to break-even. Back in 2009 it has a deficit of around half a billion euro. Meanwhile, Mr Donovan said it is important to recognise that the privatisation raised almost £6 billion for the exchequer, adding that practically "every cent" in the National Pensions Reserve Fund derives from that time. He said that since its privatisation, the company was subject to many "twists and turns".
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SANTANDER TO DELAY LONDON IPO UNTIL 2013 - The planned listing of Santander’s UK operations on the London Stock Exchange is likely to be delayed following the proposed Vickers reforms to overhaul British banking until at least 2013, says the Financial Times. Initially the Spanish bank had hoped to float 20% of Santander UK, the subsidiary formed by the acquisitions of three former building societies, for about £3 billion in the second half of this year. Recent turmoil in the markets and a raft of regulatory pressures had already pushed back the target date until next year. But further uncertainty created by Sir John Vickers’ plans to force UK banks to separate their core retail businesses from wholesale activities mean the float is now unlikely to happen until 2013 at the earliest, according to people familiar with the plans. Santander UK is less severely affected by the recommendations than some of its bigger and more diversified rivals as it does not have a large investment banking division. However, they nevertheless pose problems for the bank.
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EDF ADMITS PUBLIC HAS LOST TRUST IN ENERGY COMPANIES - EDF, one of the UK's Big Six power suppliers and a key nuclear generator, has admitted that the public has lost confidence in the energy industry and said that a Competition Commission inquiry might be needed to clear the air, writes today's Guardian. The surprise admission came as the French-owned company became the latest to raise its UK retail prices - putting up gas bills by over 15% and electricity by 4.5% - bringing condemnation from consumer groups. "We recognise there remains a widespread lack of understanding and suspicion of the industry as a whole, among the public, customers in general, politicians, regulators and others," said Vincent de Rivaz, chief executive of EDF Energy. "It is important this perception is addressed. The energy challenges Britain faces are far too important and can only be addressed in a world with trust, open dialogue and mutual understanding. "If a Competition Commission inquiry is necessary to build this trust, then it is a step that should be taken. We would welcome the opportunity to explore all the issues fully and openly. As a fair company, we have nothing to hide," he added. EDF, the worst-performing energy firm in a recent UK customer satisfaction survey, said the tariff increases, which it blamed mainly on rising wholesale power costs, would be introduced on 10 November, taking the average dual-fuel household bill to almost £1,300 a year.
