High-tech giant Hewlett-Packard last night reported first quarter profits of $328m, a drop of 58% from a year ago, but in line with analysts' forecasts. Revenues were $11.9bn, an increase of 2%.
Carly Fiorina, HP chairman and CEO, said first-quarter numbers reflected a difficult period for the company, as continued deterioration in the US economy and related weakness in consumer and business IT spending contributed to a sales slowdown in North America, where revenues fell 6%.
'More specifically, difficult US market conditions impacted our consumer and commercial desktop PC business and our printer hardware business,' said Fiorina.
The company's profits grew in overseas markets, where there was an 8% jump in revenues. The company employs over 2,000 people in Ireland.
Hewlett-Packard expects it will hold to its predictions of low earnings gains in the second quarter, but says it could see an improvement in the second half if the US economy improves and current foreign exchange rates hold.
