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Earnings and Outlook Roundup

HP foresees 6% rise in '09 sales

December 12, 2007|From Times Wire Services

Hewlett-Packard Co. said sales would rise as much as 6% in fiscal 2009, matching analysts' estimates, in what Chief Executive Mark Hurd called a "prudent" forecast.

Sales will be $117.1 billion to $118.2 billion in the year ending in October 2009, Chief Financial Officer Cathie Lesjak said. Analysts are projecting revenue of $118 billion, according to a survey by Bloomberg News.

Hewlett-Packard surpassed $100 billion in revenue this year, a level it had not expected to reach until next year, by retaking the personal-computer lead from Dell Inc., winning printer and server computer buyers, and bolstering software sales. Hurd, 50, has beaten estimates in every quarter since taking over as CEO of the world's largest PC maker in April 2005.

Sales in fiscal 2008 will rise to $115.5 billion from $104.3 billion this year, Hewlett-Packard said last month. Profit, excluding some costs, will be $3.32 to $3.37 a share.

The company said Tuesday that profit in fiscal 2009 would climb to $3.74 to $3.84 a share, compared with an average estimate of $3.79.

Hurd, who cut more than 15,000 jobs as part of a 2005 plan to reduce costs, said more cost cuts were planned as he worked toward an overall goal of "creating profitable growth." Palo Alto-based Hewlett-Packard is reducing the number of data centers it operates from 85 to six and plans to decrease real estate expenses by a third by 2010.

Hewlett-Packard shares fell $1.19 to $50.78.

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