HP Q1 net income tumbles 44%

Technology giant Hewlett-Packard has reported 44 per cent plunge in net income to USD 1.5 billon for the quarter.

Written by Agencies | New York | Published: February 23, 2012 2:54:32 pm

Technology giant Hewlett-Packard has reported 44 per cent plunge in net income to USD 1.5 billon for the quarter (Q1)ended January 31,2012,due to weak sales of personal computers and printers.

In the year-ago period,the entity had a net income of USD 2.6 billion,HP said in a statement.

The company’s net revenue was down 7 per cent to USD 30 billion in the quarter under review from the year-ago period.

HP’s quarterly numbers were dragged down due to weakness in sales of PCs and printers.

“In the first quarter,we delivered on our Q1 outlook and remained focused on the fundamentals to drive long-term sustainable returns,” HP President and CEO Meg Whitman said.

“We are taking necessary steps to improve execution,increase effectiveness and capitalise on emerging opportunities to reassert HP’s technology leadership,” she

added. Whitman,who took over the top job in September last year after the firing of Leo Apotheker,has been trying to turn around HP’s businesses.

In terms of sectoral analysis,HP’s personal computers business fell by 15 per cent to USD 8.9 billion,printing and imaging was down 7 per cent to USD 6.3 billion and the computer server and data storage operations declined 10 per cent to USD 5 billion.

However,revenues from services grew 1 per cent to USD 8.6 billion and HP’s business software division rose 30 per cent to USD 946 million.

HP’s revenue was down in all regions of the world.

Revenues from BRIC countries (Brazil,Russia,India and China),which accounted 10 per cent of total HP revenue,fell 13 per cent to USD 3.1 billion in the first quarter of FY’12.

In the Americas,first quarter revenue was USD 13.2 billion,down 9 per cent year over year,revenues from Europe,the Middle East and Africa declined by 4 per cent to USD 11.7 billion and revenues in Asia Pacific was USD 5.2 billion,representing a 10 per cent decrease.

Looking ahead,HP expects earnings in the range of USD 68 to 71 cents a share during the second quarter of fiscal 2012. Besides,HP reiterated its full year fiscal 2012 earnings outlook of around USD 3.20.

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