HP braces itself for impact of the economic storm

19 Nov 2008

The world’s largest technology company Hewlett Packard (HP) last night reported fourth-quarter revenue of US$33.6bn, a year-over-year increase of 19pc, but has warned that its 2009 performance will be impacted by current economic conditions.

Excluding the impact of the recent EDS acquisition, HP revenue grew 5pc year-over-year.

“HP delivered another solid quarter as it continues to benefit from its global reach, diverse customer base, broad portfolio and numerous cost initiatives,” said Mark Hurd, HP chairman and CEO.

“Our ability to execute in a challenging marketplace differentiates HP, enabling it to increase share, expand earnings and emerge from the current economic environment as a stronger force,” Hurd said.

However, looking ahead to next year, the company has warned that due to the economic climate it expects an unfavourable year-over-year currency impact on revenue of approximately 5pc in the first quarter and roughly 6-7pc for the full year.

For the first fiscal quarter of 2009, HP expects revenue of approximately US$32bn to US$32.5bn.

For the full year 2009, HP expects revenue of approximately US$127.5bn to $130bn.

By John Kennedy