Justin Sullivan/Getty Images
Industryweek 8310 Hp

HP Earnings Fall, CEO Looking Forward to Company Reboot

Feb. 25, 2015
HP announced late last year it would split into two companies before the end of 2015, with one direction focusing on business needs and the other on consumers.

Hewlett-Packard’s first quarter earnings showed a drop in revenue and net income, coming in below Reuters analysts’ estimates.

The computer giant reported revenue of $26.8 billion, down 5% from last year. And net earnings of $1.4 billion, a drop of 4% from a year ago. The latest report also cut estimates for both the second quarter and the full year outlook.

CEO Meg Whitman said the company had “excellent execution” during Q1, and blames the larger-than-expected revenue drop on “currency headwinds” created by the dollar’s strong performance. Whitman says it cost HP $1.5 billion dollars in operating profit.

Personal computing products took a big hit, with sales of consumer hardware units falling by 6%. Competition from other computer makers along with aggressive pricing also led the decline.

HP announced late last year it would split into two companies before the end of 2015, with one direction focusing on business needs and the other on consumers. It took an $80 million dollar charge this quarter for the split, something Whitman thinks will been a profitability turning point for the company, "It's exhilarating because we see the two companies will be much more cost competitive than HPQ is today."

Whitman talked up a deal with Deutsche Bank, for the bank to outsource parts of its wholesale banking IT infrastructure to HP. The agreement is reportedly worth billions over a 10-year period.

Popular Sponsored Recommendations

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

The Ultimate Ecommerce Excellence Checklist

Oct. 2, 2023
Scaling ecommerce operations is no easy task when your business is moving fast. Assess your current ecommerce maturity level and set optimization priorities with this practical...

Lean Manufacturing in the Age of the Industrial Internet

Oct. 24, 2023
Read how advanced MES capabilities can help you improve your labor utilization, reduce WIP, and optimize your production. Download the white paper today.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!