Wednesday, May 25, 2016

Surprisingly high profit: Hewlett-Packard sees some light – NEWS



 Thursday, 26 May 2016


 Hewlett-Packard is reflected for some time around the weak computer and PC business. But the hardware group still manages a good result in the second quarter. But this has a particular reason.



The weak demand for printers and classical computers makes the hardware manufacturers Hewlett-Packard (HP) continues to create. The Group had in the second quarter drop in sales of eleven percent accept to 11.6 billion US dollars and the profit sagged this magnitude. With $ 660 million HP earned considering aggressive cost reductions nevertheless more than expected. The stock rose after trading two percent.

HP was able to reduce costs and expenses in the end of April last quarter by around ten percent to 10.75 billion dollars. CEO Dion Weisler said total will HP can reduce costs for the full year by more than a billion dollars. Already in February, the company had reported to achieve the announced reduction of 3,000 positions not only within three years, but in the current financial year. Nevertheless, the company reported to the earnings outlook for 2016 cautious than before and severed the upper end of its forecast for earnings per share by four cents to 1.65 dollars.

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In the HP printer and PC business are bundled since November, while future lines such as server and storage services in Hewlett Packard Enterprise (HPE) were summarized. The old company was late responding to the fact that customers are increasingly buying smartphones and tablets instead of conventional computers and more business is done online now.

HPE presented its figures on Tuesday while on a sales increase around one percent reported. In addition, HPE will split off its ailing services division and merge with the rival Computer Sciences.



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