Solid quarter for HP on strong laptop sales

The world's largest technology company reported net profit in the quarter which ended on October 31 of 2.1 billion dollars, down two per cent on the same quarter the previous year.

Revenue for the fourth quarter rose 19 per cent to 33.6 billion dollars taking revenue for the full 2008 fiscal year to 118.4 billion dollars, up 13 per cent on the previous year.

Hewlett Packard, the world's second-largest personal computer manufacturer, announced last week that earnings per share were 1.03 dollars in the fourth quarter, higher than the 1.00 dollars expected by analysts.

Hewlett Packard said it expected earnings per share of between 93 and 95 cents during the current quarter, the first of the 2009 fiscal year, better than the 91 cents forecast by analysts.

"These results demonstrate our ability to execute in a challenging market," chairman and chief executive Mark Hurd said in a conference call with analysts. "I am confident in HP's ability to gain share, expand earnings, and emerge from the current environment as a stronger force in the marketplace."

Hewlett Packard said revenue grew 17 per cent in the Americas in the fourth quarter, 22 per cent in Europe, the Middle East and Africa and 14 per cent in Asia Pacific to 14.0 billion dollars, 14.1 billion dollars and 5.5 billion dollars, respectively.

Hewlett Packard said revenue from laptop computers grew a healthy 21 per cent in the fourth quarter while desktop revenue declined two per cent.

Besides personal computers, the Palo Alto, California-based Hewlett Packard is a major provider of servers, printers, software and services.

It said revenue from the imaging and printing group declined one per cent while revenue from storage and servers was also down one per cent.

Services revenue jumped 99 per cent to 8.6 billion dollars, led by 3.9 billion dollars in revenue resulting from Hewlett Packard's acquisition of computer services firm Electronic Data Systems.