HP's quarterly profit falls 19%

By on August 19, 2009, 1:09 PM
HP has reported a 19% decline in profit for the third quarter of 2009, with a recorded earning of $1.6 billion ($.67 per share) - down from $2 billion ($.80 per share) in the year-ago quarter. Excluding restructuring and acquisition costs, HP earned $2.2 billion, or $.91 per share. Analysts had predicted earnings between $.82 and $.92 per share, and revenue between $26.8 billion and $27.7 billion.

The PC-maker's quarterly sales were on par with expectations, up 8% in the Americas, down 12% in Europe, and 2% lower than last year overall. However, its revenue sank across the board, including in its computer, financial, printing, software, and storage businesses. On the bright side, HP's acquisition of EDS last year boosted revenue in its services division by 93% to $8.5 billion.

Company executives were pleased with its performance, given the "tough market climate." When asked for a timeframe of large enterprise sales picking up, HP chairman and CEO Mark Hurd said "I think what we've seen so far this year is what we'll see for the rest of the year," and that he is "encouraged by the stability" of the market.

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