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."
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."
Find up to date information on the FTSE 100 and spread betting strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.