Hewlett Packard share price plunges on turnaround fears

<p>Hewlett Packard shares are lower as the company’s turnaround is expected to take longer than hoped.</p>

Shares in Hewlett Packard have plunged on the New York Stock Exchange this afternoon (October 4th) following news the company’s boss believes it will take time to turn the business around.

The firm – which built its success on computers and printers – announced an $8.8 billion (£5.5 billion) loss for the last quarter and intends to slash some 27,000 jobs by 2014.

Its profit for the fiscal year was, according to Hewlett Packard, going to be between $3.40 and $3.60 per share, which is below analyst forecasts of $4.18 per share.

Chief executive Meg Whitman believes by 2016, the company's revenues will be growing in line with US gross domestic product and that 2013 will be a "fix and build year".

At 16:25 BST, Hewlett Packard was down on the Dow Jones Exchange by 3.1 per cent to $14.45.

The Dow itself was 0.5 per cent higher to an index value of 13573.2 points.

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