Computer and printer maker Hewlett-Packard last night reported that its third-quarter profit dropped almost 90 per cent, confirming a dire picture of the US economy.
Net profit plunged to $111 million from $1.05 billion a year ago.
|
|
Chief Executive and chairman of HP, Ms Carly Fiorina, said the markets were too "topsy turvy" to call
|
Revenue fell 14 per cent to $10.1 billion from $11.8 billion a year ago, in range with the company's warning last month but more than twice the fall Wall Street had expected before that.
Chief Executive and chairman Ms Carly Fiorina, who launched a company reorganisation just as the economy soured, leaving analysts divided on her stewardship, said markets were too "topsy turvy" to call but the company was tackling non economic issues.
Sales to consumers fell 21 per cent from a year ago, HP was taking a $250 million to $300 million charge for the job cuts it had announced, and the economic environment was still treacherous.
"We saw consumer spending drop beginning in May, continuing through June and July in a fairly dramatic way and then we saw another ratchet down in business IT spending. Again this is the pattern we are seeing all around the world." Ms Fiorina said.
Hewlett-Packard shares, trading around levels last seen in 1996, are widely seen as cheap, leading some analysts to recommend the firm with its lucrative and steady stream of printer supplies, but others say they see no catalyst to move the stock soon.
The stock is down nearly 25 per ent this year and has underperformed rival IBM by almost 40 per cent.