HP Profit Drops 13%

Lowers outlook for year

Hewlett Packard, the world's largest technology company, reported a 13% drop in quarterly net profit on Feb. 18 and lowered its outlook for the full fiscal year.

HP said net profit declined to $1.9 billion in the first quarter of its financial year from $2.1 billion a year earlier. It said revenue for the quarter ending in January was up one percent at $31.93 billion.

"HP is a market leader executing well in a tough market," HP CEO Mark Hurd said. "Our market strength, disciplined cost management and diverse portfolio allowed us to differentiate HP in the global marketplace and gain share in key markets."

HP, the world's number one personal computer maker, said it expects revenue to fall by two percent to five percent in fiscal 2009 including a dip of two percent to three percent in the second quarter of the year.

HP said revenue grew 11% in the Americas in the first quarter to $12.4 billion while declining by three percent in Europe, the Middle East and Africa to $12 billion. Revenue grew by 11% in Asia Pacific to $4.4 billion.

Revenue was lower across nearly all of HP's product lines with notebook computer revenue falling by 13% and desktop revenue declining by 25%. Revenue from the company's imaging and printing group declined 19% to $6 billion. Commercial hardware revenue declined by 34% while consumer hardware revenue fell by 37%. Printer unit shipments decreased by 33%.

Copyright Agence France-Presse, 2009

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