HP profits plunge as PC sales slump
HEWLETT–PACKARD has announced a 44 per cent decline in quarterly earnings as the computer giant was hurt by weak sales of PCs and printers.
The Silicon valley company reported net income of $1.47bn (£938m) for the first fiscal quarter, down from $2.6bn a year earlier.
Revenue dropped by seven per cent to $30bn, missing forecasts.
HP has struggled to deal with the shift away from traditional PCs and towards mobile devices.
Meg Whitman, HP’s new president and chief executive officer, said: “In the first quarter we focused on the fundamentals to drive long-term sustainable returns. We are taking the necessary steps to improve execution, increase effectiveness and capitalize on emerging opportunities to reassert HP’s technology leadership.”
The company’s shares slipped three per cent lower to $28.65 in after-hours trading.