Hewlett-Packard's Q2 Profit Slumps Amid Global Downturn in PC Sales

May 22, 2013
CEO Meg Whitman said HP made up in part for the slump from strong performances in services and printing.

SAN FRANCISCO - Hewlett-Packard (IW 500/7) said Wednesday that its quarter profit was hit by a dramatic slump in sales of personal computers, while maintaining that its reorganization is making progress.

The troubled but biggest maker of personal computers said net profit in the second fiscal quarter fell 32% from a year ago to $1.1 billion.

The earnings amounted to 87 cents a share after adjustments, better than expected on Wall Street, sparking a rally of some 12% in HP stock in after-hours trade.

HP said it had quarterly revenues of $27.6 billion, down 10% from the prior year, or 9% when adjusted for currency changes.

Amid a severe slump in PC sales globally, the company said its own PC sales in the quarter fell 21% from a year earlier -- down 18% for desktops and 24% for notebooks.

But CEO Meg Whitman said HP made up in part for the slump from strong performances in services and printing.

"I am encouraged by our performance in the second quarter, and I feel good about the rest of the year," Whitman said.

"As I have said many times before, this is a multiyear journey. We have a long way to go, but we are on track" to meet profit targets.

HP fended off a challenge from China's Lenovo at the top of the PC market. But the company has acknowledged struggling in the shifting technology landscape, as consumers move away from PCs to tablets and other mobile devices.

Copyright Agence France-Presse, 2013

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