HP confirms rise in profits

<p>A rise in profits has been announced by Hewlett-Packard.</p>

Hewlett-Packard (HP) has confirmed a rise in its profits in its latest financial results.

In a statement, HP revealed it recorded an 18 per cent rise in profits to $1.3 billion (£771 million) for the second quarter of the year, the three month period to the end of April.

HP accidentally released the statement before stock markets in the US closed last night (May 22nd) and its shares were over two per cent down for the day, although they rose 0.06 per cent in after-hours trading.

Chief executive and president at HP Meg Whitman stated that she is pleased to announce the turnaround of the business remains on track. She said: "We're gradually shaping HP into a more nimble, lower-cost, more customer- and partner-centric company."

Revenues slip

Second quarter net revenue of $27.3 billion was recorded by the company and this was down by one per cent from the prior-year period and flat on a constant currency basis. Printing revenue was four per cent lower year over year with a 19.5 per cent operating margin, HP said.

Ms Whitman added: "With each passing quarter, HP is improving its systems, structures and core go-to-market capabilities. We're gradually shaping HP into a more nimble, lower-cost, more customer- and partner-centric company that can successfully compete across a rapidly changing IT landscape."

HP also announced plans to lay off an additional 11,000 to 16,000 workers, having previously announced it would cut 34,000 jobs in its restructuring proposals unveiled in 2012.

In the statement, HP stated that it generated $3 billion in cash flow from operations in the second quarter, which was a drop of 16 per cent on the previous period.

The company said: "HP's dividend payment of $0.1452 per share in the second quarter resulted in cash usage of $298 million. HP also utilised $831 million of cash during the quarter to repurchase approximately 26.7 million shares of common stock in the open market. HP exited the quarter with $15.4 billion in gross cash."

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