Q2 profit up 13 percent for HP

May 19, 2010

Second quarter revenue was up 11 percent in the Americas to $13.5 billion. Revenue was up 11 percent in Europe, the Middle East and Africa and up 19 percent in Asia Pacific to $11.8 billion and $5.5 billion, respectively.

In a HP phone conference call, CEO Mark Hurd said: “Our growth this year was broad based, Americas and Asia pacific each posted solid double-digit growth. Europe also grew double digits.”

Its Imaging and Printing Group (IPG) revenue rose eight percent to $6.4 billion. Supplies revenue was up 6 percent, while commercial hardware revenue and consumer hardware revenue increased 13 percent and 16 percent.

Printer unit shipments increased 9 percent, with commercial printer hardware units down 8 percent and consumer printer hardware units up 15 percent. Operating profit for this area was $1.1 billion, or 17.2 percent of revenue, versus $1.1 billion, or 18.2 percent of revenue, last year.

Hurd added: “The Imaging and Printing Group delivered a solid eight percent growth with double digit revenue growth in consumer and commercial hardware. IPG continues to make significant progress in placing units with a high page consumption, which is ink in the office, wireless and graphics, each of which grew more than 30 percent.”

He also highlighted the importance of managed print services as a long-term business venture, with five-year contracts. “Overall we felt very good about the IPG quarter, and we’ve worked hard to get the business in a position to be able to do what we’ve just reported. The one thing we really want to get done is to get the laser printer number into a position where we’re driving unit growth and the demand is there,” explained Hurd.

Commenting on the Palm acquisition, Hurd said that it had more to do with the intellectual property. “It is a large family of devices and we think of printers, you’ve now got a whole series of web connected printers and as they connect to the web need an OS,” he said.

For the third quarter, HP estimates revenue of approximately $29.7 billion to $30.0 billion. It expects full year revenue to grow by around eight to nine percent.

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