HP reports slow growth

By Steve Malone

Posted on 20 Aug 2003 at 10:20

Hewlett Packard has reported third quarter revenues of $17.35 billion, compared to $16.54 billion in the prior year period, a 5 per cent increase which transforms into a profit for the quarter of $297 million. This compares to a 27 per cent year on year increase reported last week by arch rival Dell.

HP admits that its desktop business, particularly in the US, had taken a hit in its battle with Dell. The Personal Systems group reporting an operating loss of $56 million. The company blames seasonal factors, shipping costs and lower prices admitting that its 'own overly aggressive pricing' had contributed to the loss, but promises to be back in the black next quarter.

One ray of sunshine in the Personal Systems group was an increase of 27 per cent in notebook revenues and increasing market share by 1.4 per cent.

The jewel in the HP crown remains the Imaging and Printing group where revenues totalled $5.24 billion in the quarter, an increase of 10 per cent year-over-year. This is likely to continue as HP starts to ship its new ranges of printers, cameras and all-in-one devices in the run up to Christmas.

Carly Fiorina, HP chairman and chief executive officer commented 'The third quarter is always tough, but we still should have done better, Nevertheless, we are confident in our strategy and the actions we're taking.'