HP profit drops 17 pct; PC, ink sales stumble

May 19, 2009

(AP) -- Hewlett-Packard Co.'s quarterly profit dropped 17 percent on lighter sales of personal computers and printer ink, two of its biggest sellers and a sign that the woes in consumer technology spending dragged on beyond the miserable holiday season.

HP's results, reported Tuesday after the market closed, muddies the picture of whether technology spending has fallen as far as it's going to in this recession. HP's outlook was not optimistic, and its shares fell in extended trading.

HP's , Cathie Lesjak, said in an interview that it's still "too tough to call" whether PC sales have hit a bottom. That differs from what one of HP's major suppliers, Intel Corp., said last month. Intel's CEO, Paul Otellini, said PC sales had "bottomed out" during the first three months of the year and appeared to be returning to normal patterns.

is the world's No. 1 seller of PCs, while Intel is the world's biggest supplier of microprocessors, the calculating engines of PCs. Perhaps more telling is that the last quarter at HP ended April 30, so its analysis is based on later information than Intel had.

Palo Alto, Calif.-based HP said it earned $1.72 billion, or 70 cents per share. Excluding and other one-time charges, HP earned 86 cents per share. Analysts were expecting a profit of 86 cents per share, but HP said it beat Wall Street's forecast because it included 2 cents per share of charges related to a patent dispute that analysts didn't factor into their estimates.

Sales fell 3 percent to $27.4 billion, which matched analyst estimates. HP says sales would have been up 3 percent were it not for currency fluctuations.

HP kept its profit forecast at $3.76 to $3.88 per share for fiscal 2009, stripping out one-time charges. But it also indicated a sharper sales decline was in sight. After previously predicting that its full-year sales would decline 2 percent to 5 percent, HP narrowed that range Tuesday to 4 percent to 5 percent.

HP shares fell $1.48, 4 percent, to $35.10 in extended trading.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Nokia profits rise after sale of handset division

add to favorites email to friend print save as pdf

Related Stories

Adobe 1Q profit, sales drop, squeezed by downturn

Mar 17, 2009

(AP) -- Adobe Systems Inc., the company behind the popular Photoshop software, posted a decline in fiscal first-quarter profit and sales Tuesday, squeezed by the economic downturn.

Apple 2Q profit gains 15 percent, beats Street

Apr 22, 2009

(AP) -- Strong sales of the iPhone helped Apple Inc. lift its quarterly profit 15 percent, well ahead of Wall Street's expectations Wednesday despite the global economic downturn.

As Oracle readies takeover, Sun's loss widens

Apr 28, 2009

(AP) -- Sun Microsystems Inc.'s loss ballooned in the latest quarter as restructuring charges and a 20 percent drop in sales compounded the financial woes Oracle Corp. is set to inherit by acquiring Sun for ...

TI profit, revenue tumble on shrinking demand (Update)

Apr 20, 2009

(AP) -- Texas Instruments Inc. said Monday that first-quarter profit and revenue tumbled as competition heightened and demand for its chips shrank amid the recession, but the results still beat the company's own expectations ...

Recommended for you

Nokia profits rise after sale of handset division

12 hours ago

(AP)—Telecommunications and wireless equipment maker Nokia Corp. saw its shares surge on Thursday after it reported higher profits and an improved earnings outlook in the wake of its sale to Microsoft of its troubled handset ...

Swiss drug maker Roche posts 7 percent profit drop

15 hours ago

(AP)—Swiss drugmaker Roche Holding AG on Thursday posted a net profit drop of 7 percent compared with a year ago, weighed down by a strong Swiss franc and charges from one of its diagnostic units.

Cheaper wireless plans cut into AT&T 2Q profit

Jul 23, 2014

(AP)—AT&T Inc. on Wednesday posted lower net income for the latest quarter due to cheaper cellphone plans it introduced as a response to aggressive pricing from smaller competitor T-Mobile US.

User comments : 0