HP reports net profit of $2.2bn in fourth quarter

Technology giant Hewlett-Packard (HP) has reported fourth-quarter sales of $28.3 billion (€19.1 billion) and net profit of $2.2 billion.

The results, which were ahead of the expectations of Wall Street analysts, meant HP's annual revenues broke the $100 billion mark for the first time and cemented its position as the world's largest technology company.

For its 2007 financial year to October 31st last, HP reported revenues of $104.3 billion and net income of $7.3 billion.

Unlike Cisco and IBM, which recently warned of a downturn in US technology spending, HP has benefited from its international spread with only about one-third of its business being in the US.

Although the company does not break out detailed financial data for the Republic, HP Ireland's managing director, Martin Murphy, said it had been an outstanding year. Based on market share figures from analysts IDC, HP Ireland had revenues of more than €600 million.

"We have delivered on what we said we would do and reinforced our number-one position in Ireland," Mr Murphy said.

Recognising the contribution of the HP workforce, he said the results "create the environment to look at things we might do here in the future".

HP currently employs about 4,000 people in Ireland, where it has five main divisions.

In addition to the Irish sales operation, it has a print head manufacturing facility, the headquarters of its Europe, Middle East and Asia financial services division, both of which are in Leixlip, Co Kildare, a European customer support operation in Clonskeagh, Dublin, and a software development centre in Galway.

Under a plan announced last month, all activities bar the software development will be consolidated in Leixlip over the next year.

Mr Murphy said 2008 was likely to be a "challenging year" in the Irish economy and called on the Government to ensure the Republic remained competitive.

He also echoed comments made in the US last week by HP chief executive Mark Hurd suggesting there could be even more consolidation in the technology industry and said that would be reflected in the local market.