HP outlook hit by Japan

City A.M. Reporter
HEWLETT-PACKARD (HP) yesterday slashed its profit outlook as it boosts spending to resuscitate its troubled services business.

The sluggish consumer PC market and the impact of Japan’s earthquake are also expected to hurt the company’s profits for the rest of the year.

HP released its results a day before it planned after an internal memo from chief executive Leo Apotheker warned of “another tough quarter” ahead. Revenue in the fiscal second-quarter ended 30 April rose to $31.63bn (£19.5bn), up three per cent from the previous year