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HP continues to suffer

by on21 August 2015

Revenue drops

The maker of expensive printer ink, HP is continuing to suffer, torturing itself with a ruthless restructuring.

The company reported a drop in revenue for the fourth straight quarter, hurt by weak PC sales and corporates saying no to its salespeople.

Chief Executive Meg Whitman said the factors pressuring the PC market were expected to continue through the fourth quarter and well into the next fiscal year.

HP has struggled to adapt to mobiles and online computing and is splitting into two listed companies later this year, separating its computer and printer businesses from its faster-growing corporate hardware and services operations.

Things should have been getting better, the outfit is near the end of a multi-year restructuring under Whitman, who has been cutting costs and focusing on higher-margin sales. The plan includes the elimination of about 55,000 jobs.

Chief Financial Officer Cathie Lesjak said the company expects the number of job cuts to increase by up to 5 percent by the end of October.

A relentless decline in PC sales has hurt the company hard — HP has reported a drop in quarterly sales in 15 of the last 16 quarters.

Revenue at HP's personal computer and printer businesses fell 11.5 percent in the third quarter ended July 31.

Enterprise services division sales dropped 11 percent, while revenue at the enterprise group rose 2 percent.

Total revenue fell 8.1 percent to $25.35 billion in the third quarter, also hurt by a strong dollar.

Analysts on average had expected a revenue of $25.44 billion.

Last modified on 21 August 2015
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