Mark Hurd An Increase In HP Net Profit
The computer manufacturer posted a gain of 9% in net profit for its first quarter, but analysts heard a likelihood of more job cuts.
Carly Fiorina’s replacement as CEO, Mark Hurd, announced the company exceeded Wall Street expectations with its 9% net profit gain. He also hinted at job cuts within the organization.
“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,” Mr. Hurd said in a call with analysts.
The Palo Alto computer firm reported quarterly net income of $966 million USD, or 33 cents per share on $21.6 billion USD in revenue.
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 Inc., 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.”
For those at HP, this may lead to increased activity at in-house printers as staff printout updated resumes and prepare for what may be a lengthy job search.
David Utter is a staff writer for WebProNews covering technology and business. Email him here.