Industryweek 4437 Hewlettpackardlogo

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

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

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.

3D Printing a More Efficient Factory Floor

Nov. 16, 2023
Today’s additive manufacturing platforms make it simple to print a wide range of high-performing industrial parts as soon as possible and right where you need them — unlocking...

Machine Learning and Predictive Analytics Guidebook for Engineers

Sept. 27, 2023
Leverage Domain Expertise to Drive Optimization – Without Needing a Data Scientist.

Voice your opinion!

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