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HP fourth-quarter revenue drops on weak enterprise demand
[NEW YORK] Hewlett-Packard Co said its quarterly revenue fell in almost every business segment over the year, calling into question its plans to jumpstart growth by splitting off enterprise services from its traditional computer and printing units next year.
Sales fell 2.5 per cent in the fourth quarter to US$28.41 billion, from US$29.13 billion a year earlier, HP said on Tuesday. Profit declined 5.7 per cent to US$1.33 billion, or 70 cents a share, compared with 73 cents a share a year ago.
The enterprise group and enterprise services, areas that Chief Executive Meg Whitman had previously flagged as growth drivers, showed revenue declines of 4 per cent and 7 per cent respectively.
The company's personal computer division, its largest and most mature, grew by 4 per cent after a 12 per cent jump in the prior quarter. The high-margin printer business shrank by 5 per cent.
The company said last month it would split into two listed companies, separating its computer and printer businesses from its faster-growing corporate hardware and services operations, and eliminate another 5,000 jobs as part of its turnaround plan.
HP shares edged down 0.77 per cent after closing up 0.35 per cent to close at US$37.63 on the New York Stock Exchange.