Thursday February 19, 12:33 AM
HP reports 13 pct drop in net profit, lowers outlook
NEW YORK (AFP) - Hewlett Packard (NYSE: HPQ - news) , the world's largest technology company, reported a 13 percent drop in quarterly net profit on Wednesday and lowered its outlook for the full fiscal year.
HP said net profit declined to 1.9 billion dollars in the first quarter of its financial year from 2.1 billion dollars a year earlier.
It said revenue for the quarter ending in January was up one percent at 31.93 billion dollars.
"HP is a market leader executing well in a tough market," HP chairman and chief executive officer 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."
The Palo Alto, California-based company said it expected earnings per share of 3.76 dollars to 3.88 dollars for the current fiscal year, down from a previous forecast of 3.88 dollars to 4.03 dollars.
Analysts had expected earnings per share of 3.77 dollars. The new estimate is still above the 3.62 dollars of fiscal 2008.
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.
Besides personal computers, HP is a major provider of servers, printers, software and services.
HP said revenue grew 11 percent in the Americas in the first quarter to 12.4 billion dollars while declining by three percent in Europe, the Middle East and Africa to 12 billion dollars.
Revenue grew by 11 percent in Asia Pacific to 4.4 billion dollars.
Revenue was lower across nearly all of HP's product lines with notebook computer revenue falling by 13 percent and desktop revenue declining by 25 percent.
HP said revenue from its imaging and printing group declined 19 percent to 6.0 billion dollars.
Commercial hardware revenue declined by 34 percent while consumer hardware revenue fell by 37 percent.
Printer unit shipments decreased by 33 percent.
In electronic after-hours trading, HP lost 3.26 percent to 32.97 dollars.
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