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Headline: HP cost cuts pay Q1 dividends
Hewlett-Packard (HP) has posted a strong set of Q1 results while revealing that it is ahead of its post-Compaq merger cost-cutting schedule. HP CEO Carly Fiorina said: “HP delivered a solid quarter. In a seasonally weak period we demonstrated HP’s earnings potential with our most balanced profit performance since the merger.”
The firm posted net income of $936 million, or EPS of $0.30, compared to $721 million, or EPS of $0.24, in the year ago quarter. Revenue rose 9% to $19.5 billion. HP’s profit figure was boosted by revenue in its desktops and notebooks segment which grew at almost double the pace of rival Dell.
While HP’s core printer and printer supplies profit centre were unspectacular, the strong performance of its PC segment provided one of the best indications yet that the firm’s merger with Compaq is coming to full fruition.
The PC business saw revenue rise 20% year-on-year to reach $6.19 billion.
Fiorina also told a technology seminar in Singapore that it is ahead of its post-Compaq merger cost-cutting schedule.
She said HP has surpassed its cost-cutting goal of $2.5 billion in two and a half years to reach savings of $3.5 billion in just one year.
Palo Alto (CA)
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