Hewlett-Packard shares went up as much as 3.3% after the company posted results that beat Wall Street expectations and new CEO, Mark Hurd announced that the company is planning to cut costs.
Hewlett-Packard reported a 9% increase in net profit for the first quarter. The company reported quarterly net income of $966 million, or 33 cents per share on $21.6 billion in revenue.
Hurd, who recently replaced Carly Fiorina as HP’s CEO, hinted that job cuts will be coming in the future as part of the company’s plan to get back on track.
Hurd commented, “What’s clear to me already, even at this early stage, is that hard work lies ahead of us if we are to get HP’s overall financial performance where it needs to be.”
As David Utter of Murdok reported, while the company’s major product lines all showed profitability, the weakness in the printer business alarmed shareholders. Gains by rival printer makers, like Dell have led to deep price cuts in its printer line.
Printing has been acknowledged as a strength for HP. Competition in the marketplace may drive those rumored job cuts through the imaging and printing division in a repeat of earlier job buyouts this year.
“There’s no quick fix to achieving the kind of performance that I think this company is capable of,” Mr. Hurd said. “We’re in the process of reviewing every element of operations and cost structure, and nothing will be taken for granted.”
Hurd also reiterated that Hewlett-Packard has no plans for spinning off any of the company’s divisions for the time being. The company expects third-quarter earnings in the range of 29 to 31 cents a share.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
