US computer manufacturer Hewlett-Packard's third quarter profits dropped to $425 million (£265 million) from $576 million (£360 million) for the same period one year ago, the company said last night.

Hewlett Packard will create 1,150 new jobs over the next three year's at its new printer cartridge factory in Leixlip, Co Kildare.

The 26 per cent drop in net earnings prompted the chief executive, Mr Lewis Platt, to call the outlook for the next few months "uncertain".