IT industry to return to growth in 2010, HP’s Hurd says

25 Sep 2009

The global IT industry will return to growth in 2010, HP chief executive Mark Hurd told an analysts meeting in New York yesterday. The company predicts revenues of US$118bn for fiscal 2010.

“We expect the IT industry to return to growth in 2010 and believe that HP will outpace the market,” said Mark Hurd, HP chairman and chief executive officer.

“Our broad product and services portfolio and global scale give HP a clear competitive advantage. As a result, we see tremendous opportunity to grow our business and improve earnings while delivering value to our customers,” Hurd said.

At the meeting, HP’s senior executive leaders provided updates on the company’s continued efforts to capture market share and take advantage of secular trends, including a movement toward converged devices and infrastructure as well as a transformation in printing, from analogue to digital.

Hurd said HP is in a superior position to help customers manage and transform their technology systems and operations. The company plans to continue to leverage the acquisition of EDS to expand margins and market share with growth in services, as well as new hardware and software sales.

Cathie Lesjak, HP executive vice-president and chief financial officer, provided HP’s outlook for fiscal 2010.

For the full fiscal year, HP expects revenue of about US$117.0bn to US$118.0bn and diluted earnings per share (EPS) in the range of US$3.60 to US$3.70

She said looking forward, HP sees significant opportunities to invest in innovation and sales to expand its portfolio and market coverage.

“HP plans to improve margins, given its operating leverage on a leaner cost structure, while continuing to invest for growth,” Lesjak added.

By John Kennedy

Photo: Mark Hurd, HP chairman and chief executive officer.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years