Lets add HP with RIM as one of those companies that cant get back to it’s glory day. HP reported yesterday that they posted a quarterly loss of 8.9 bn. HP has been losing in services division and falling revenues and according to CEO Meg Whitman its going to take awhile before the company can turnaround.
Its chief executive, Meg Whitman, warned that “we are still in the early stages of a turnaround” as she told analysts that it will be a long slog to return the Silicon Valley pioneer to growth. Its stock value shrank by 5% in after-hours trading.
HP had indicated earlier in August that it would take an $8bn (£5bn) charge against the shrinking value of the services firm Electronic Data Systems it bought in 2008 for $13bn. But total revenues fell by 3.6% to $8.7bn, and operating income by 6% to $3bn. The biggest drops came in the Personal Systems Group, the world’s largest PC business, where revenues fell by 10% and income by 28%, and the enterprise servers and storage group, where revenues fell by 5% and income by 20%. The printing business, also the world’s largest, saw revenues fall, though profits improved slightly.
HP’s woes reflect those of Dell, the world’s third-largest PC maker, which earlier this week reported dramatically slowing revenues and profits, and blamed a slowdown in consumer and enterprise spending – a trend it does not expect to improve in the next quarter.
Whitman, the third chief executive in two years, and who took over 11 months ago in a boardroom coup that ejected Leo Apotheker, who had suggested abandoning the PC business because it was too unprofitable, has been driving reorganisations, cost-cutting and job cuts to try to get the 73-year-old company back to growth and to recapture the innovation for which it became famous. The stock has lost more than half its value in the past two years.
