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News > Technology
HP's profits fall 13 percent
May 15, 1998: 9:02 a.m. ET

Second-quarter income weakens on Asian turmoil, competitive PC pricing
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NEW YORK (CNNfn) - Hewlett-Packard Co. on Friday reported a 12.6 percent drop in second-quarter net income, following through on its profit warning two days earlier.
     For the quarter ended April 30, net earnings fell to $685 million, or 65 cents a share, from $784 million, or 75 cents, in the second quarter last year.
     However, revenue rose 16 percent to $12 billion from $10 billion a year earlier.
     "While our solid revenue and order growth this quarter shows that we're addressing real customer needs, our earnings performance fell well short of expectations," said Lewis E. Platt, chairman, president and chief executive.
     Profitability was affected by pricing pressure in PCs, troubled Asian economies and higher operating-expense, which Platt characterized as "unacceptable."
     Revenue growth in the Asia Pacific region amounted to 1 percent as opposed to double-digit growth rates in Europe and Latin America.
     Following Wednesday's surprising profit warning, HP stock (HWP) plunged 11-5/16 to 70-5/16 on Thursday.Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.