Hewlett-Packard back in the black, not out of trouble

TURNAROUND::HP’s president said the firm achieved the financial performance it said it would, and is shaking up its leadership team


Fri, Aug 23, 2013 - Page 15

Hewlett-Packard Co (HP) saw profits return in the past quarter, but slumping PC sales took a bite out of revenues of the troubled US tech giant.

In results for the fiscal third quarter released on Wednesday, HP said its net profit was US$1.39 billion, a turnaround from the same period last year when a massive writedown led to losses of US$8.9 billion.

However, revenues for the quarter fell 8 percent from a year ago to US$27.2 billion, and PC sales floundered.

HP said consumer revenue for its personal systems unit which makes PCs declined 22 percent. Total unit sales were down 8 percent, with desktops falling 9 percent and notebooks 14 percent.

The California company has been in focus amid a severe slump in PC sales globally, as it has failed to adapt to a shift to mobile devices.

However, HP president and chief executive Meg Whitman said the company “achieved the financial performance we said we would,” meeting analyst forecasts for profits.

“I remain confident that we are making progress in our turnaround. We are already seeing significant improvement in our operations, we are successfully rebuilding our balance sheet, our cost structure is more closely aligned with our revenue and we have reignited innovation at HP, with a focus on the customer,” she said.

HP also said it was shaking up its executive leadership team to “help the company accelerate its turnaround.”

Chief operating officer Bill Veghte will become executive vice president and general manager of the HP Enterprise Group.