HP operating profits up 308pc

17 Nov 2006

Technology powerhouse HP this morning reported a 7pc year-on-year hike in fourth-quarter revenues of US$24.6bn. The company reported a massive 308pc jump in operating profits of US$1.7bn, up from US$400m a year ago.

“We closed a strong year with solid revenue growth, margin expansion across our key businesses and excellent cash flow from operations,” said Mark Hurd, HP chairman and chief executive officer.

Revenue in EMEA (Europe, Middle East and Africa) grew 7pc to US$9.7bn. HP’s personal systems group saw unit shipments rise 16pc during Q4, with revenues up 10pc to US$7.8bn.

The company’s printing and imaging group saw revenues rise 7pc to US$7.3bn.

The company’s Enterprise Storage and Servers group reported revenues up 4pc to US$4.7bn while HP Services revenue increased 5pc year over year to US$4.1bn. HP Software revenue was up 14pc to US$349m.

In its outlook for 2007, HP estimates first-quarter revenues will come in at between US$24.1bn to US$24.3bn and that full year 2007 revenues will be US$97bn.

By John Kennedy