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HP suffers six per cent sales fall

Greg Lockley
HP suffers six per cent sales fall

Hewlett Packard, the world's largest PC maker, has seen a six per cent drop in its first-quarter sales.

The firm saw its net sales fall to $28.4bn (£15.2bn), whilst net profit also suffered a 16 per cent tumble on the previous year to $1.2bn.

However, HPs results still outdid forecast and as a result, the firm's shares rose by six per cent in after-hours trading.

The news comes as rival PC maker Dell announced declines of its own, with an 11 per cent drop in revenue and a sharp 31 per cent fall in quarterly profits.

Both firms' struggles to progress sales have been well publicised as the PC market continues to dwindle, with demand for traditional PC systems in decline as tablet PCs and other mobile devices gain popularity.

Meg Whitman, chief executive of HP has said that HP is in the midst of a turnaround plan, but warned it would take several years.

It was revealed last May that HP was to cut 27,000 jobs by the end of 2014, which would reduce the firm's operating costs by up to $3.5bn per year.

"While there's still a lot of work to do to generate the kind of growth we want to see, our turnaround is starting to gain traction as a result of the actions we took in 2012 to lay the foundation for HP's future," said Whitman in a statement following the news.

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Tags: Dell, HP, sales, pc, profit, decline, net

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