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Laptops give HP profits a boost
20.08.08
Printers and computers giant Hewlett-Packard defied harsh trading conditions to deliver a 14% jump in net profit for the third quarter.
Now it is forecasting fourth-quarter earnings ahead of expectations.
In the last three months, HP's computer division grew 15%, buoyed by strong demand for laptops.
Despite softer sales of its profitable printers, revenue rose 10.5% to $28 billion
(£15 billion). Net profit was $2.03 billion.
The company benefited from a falling dollar, with sales outside the US accounting for 68%. “If the dollar stays at current levels, we may experience some downward pressure on revenue,” chief financial officer Cathie Lesjak admitted.
Adjusted for exchange rates, Europe, Middle East and Africa revenue rose 5% and Asia-Pacific 8%. Sales in the Americas grew 3%.
Revenues in the printing business, which accounts for a large part of HP's profits,
grew just 3% in the quarter, with printer shipments down by 2%.
