Summary Box: HP’s third-quarter profit plunges 19 percent as PC, ink sales remain weak
By APWednesday, August 19, 2009
Summary Box: HP profit hurt by weak PC, ink sales
PROFIT PINCHED: Hewlett-Packard Co.’s fiscal third-quarter profit fell 19 percent despite what the company described as improving conditions in the consumer personal computer market. HP’s net profit was $1.64 billion, or 67 cents per share, versus $2.03 billion, or 80 cents per share, in the year-ago period.
PROFIT MACHINE PRESSURED: Some analysts are concerned about ongoing weakness in HP’s printer ink sales, which have long been one of the company’s most reliable profit engines. Sales of HP printer supplies slumped 13 percent in the three months ended July 31. Management blamed the decline on currency fluctuations and changes in the way it manages inventory at resellers.
NUMBERS STILL BEAT: HP’s profit, excluding one-time items, totaled 91 cents per share, a penny better than the average estimate of analysts polled by Thomson Reuters. Sales fell 2 percent to $27.45 billion, still slightly ahead of analysts’ projections of $27.26 billion.
