Authored by Jon Mercer in Computer Hardware
Published on 12-02-2008
Even after losing its lead to Dell as the U.S. Top computer business, Hewlett Packard still remains number one in the World in overall computer sales.
Judging by the company’s fourth quarter results, leaked recently, it looks as though they’re headed for even more success. Hewlett Packard scored big with fourth quarter revenues of $33.6 Billion. That’s a nineteen percent increase over last years fourth quarter results. Even after adjusting the figures for currency effects that’s still a sixteen percent increase over last year.
This is no small feat in the tough economic climate of the last year, especially when you consider that many computer companies are struggling. HP saw a large rise in profits and shareholders were thrilled to receive a very substantial $1.03 per share. This of course is not including tax adjustments. Other corporate measures, such as, research and development and restructuring dropped that figure only slightly to $.84 per share.
The official fourth quarter projections wont be released until November 24, however news of the profits were made public on Monday as the result of an internal leak. According to top executives, currency rates are going to cost the company five percent in revenue for the first quarter of 2009 due to instability in global currency. More loses are projected for the coming year for this same reason.
Despite layoffs, conducted by HP to offset costs of acquiring EDS, a business and technology specialist, the company has had a banner year. Hewlett Packard is expected to earn from $127.5 to $130 Billion in 2009.
The Chief Executive Officer of Hewlett Packard, Mark Hurd, said he was pleased with the company’s strong earnings in 2008 with the recession making the marked so volatile: “HP delivered another solid quarter, as it continues to benefit from its global reach, diverse customer base, broad portfolio, and numerous cost initiatives.” said Hurd.
“Also our ability to execute in a challenging market place differentiates HP, enabling it to increase share, expand earnings, and emerge from the current economic environment as a stronger force.” Hurd was quoted Monday after news of the fourth quarter windfall was leaked before the company’s official announcement.
Hewlett Packard does have their problems, but they are far and away outweighed by their strengths. After having one of the best years in the company’s history, HP is proving once again that it is a force to be reckoned with in the global computer industry.