HP Net Profit Up 14% in Quarter

Q4 net profit was $2.4 billion

Hewlett-Packard posted a 14% rise in quarterly net profit as slumping personal computer sales were offset by a solid performance in its services division.

The Palo Alto, California-based HP reported fourth-quarter net profit of $2.4 billion, compared with $2.1 billion a year ago.

The world's largest manufacturer of personal computers said revenue fell 8% in the quarter which ended October 31 to $30.8 billion.

"HP's solid performance in services drove record profit, and the accelerated pace in signings creates strong momentum going into 2010," HP chairman and chief executive officer Mark Hurd said.

"Our operational execution and improving cost structure generated strong quarterly and year-end results," he said.

HP said revenue from its Personal Systems Group declined 12% in the quarter to $9.9 billion while operating profit was $460 million, down from $616 million a year ago.

Notebook computer revenue was down 8% while desktop revenue declined by 16%, it said. Commercial client revenue dropped 15% while consumer client revenue declined by 8%.

HP said services revenue increased 8% in the fourth quarter to $8.9 billion while operating profit was $1.4 billion, up from $945 million a year ago.

HP completed its acquisition of technology services provider Electronic Data Systems Corp. in August 2008.

HP said fourth-quarter revenue declined t3% in the Americas to $13.6 billion dollars and was down 17% in Europe, the Middle East and Africa to $11.7 billion.

Revenue declined by 1% in the Asia Pacific region to $5.4 billion.

Speaking to CNBC television, Hurd said "Asia was strong for us overall. "We saw a strong China again -- 20% growth as a company in China -- and we saw solid improvement across the rest of Asia as well, perhaps with the exception of Japan," he said.

HP said revenue for its Enterprise Storage and Servers division fell 17 % to $4.2 billion in the fourth quarter while software revenue declined 16% to $967 million.

HP said revenue from its Imaging and Printing Group fell 15% to $6.5 billion.

HP estimated revenue of $29.6 billion to $29.9 billion for the first quarter of the current fiscal year and full fiscal year 2010 revenue of between $118.0 billion to $119.0 billion.

Copyright Agence France-Presse, 2009

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