Feeds

HP products stiff except sub-$100 printers

Profits down 89%

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

Hewlett-Packard has suffered an 89 per cent drop in Q3 profits - but the good news is that was above its reduced forecasts.

HP enjoyed sales of $10.1 billion for the three months to 31 July. This was down 14 per cent from the $11.8 billion revenues a year ago. Net profit was $111 million, down from $1.05 billion in Q3 fiscal 2000.

HP's consumer business suffered a 21 per cent drop in revenue body blow. Sales to businesses fell 11 per cent. Home PC sales slumped 36 per cent on last years figures, notebook sales rose five per cent.

In spite of the figures CEO Carly Fiorina said she was committed to the PC business and reckoned the company was a world leader in home PCs.

She said she expects sales to increase from Q3 to Q4 as the holiday spending season arrives. But Q4 revenue is expected to remain 14 per cent below the same period last year.

"We are operating in a very tough environment - no question -- and it is reflected in our results this quarter," said Fiorina in a conference call.

Most HP product lines stiffed a bit this quarter but sub $100 printer did well. Consulting revenue rose 9 per cent, and outsourcing revenues climbed by 20 per cent.

The company is going to take a $250 million to $300 million restructuring charge in the current quarter to pay for the 6,000 jobs its cutting. ®

Related Stories

Mystery of crashing HP printers solved?
Consumers (lack of) blamed for Western Europe PC sales slump
Hewlett-Packard to can an extra 6000 jobs

The Essential Guide to IT Transformation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.