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HP beats Street in 4Q
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November 16, 1998: 5:00 p.m. ET
Company reports growth across its product lines; warns of Asia, LatAm
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NEW YORK (CNNfn) - Hewlett-Packard Co. Monday reported stronger-than-expected fourth-quarter operating earnings despite sluggish revenue growth due to economic conditions in Asia and Latin America.
The Palo Alto, Calif., manufacturer of computers and printers posted a profit of $710 million, or 79 cents a share, well above Wall Street forecasts of 75 cents a share.
The company, however, took $170 million in charges for voluntary-severance programs and fixed-asset writedowns. Including those charges, Hewlett-Packard logged earnings of 68 cents a share.
HP's net profit slipped 12 percent from last-year's fourth quarter, when it posted earnings of $806 million, or 75 cents a share.
"Several businesses did quite well, especially laserjet printers and PCs," said Lewis Platt, HP's chairman, president and chief executive. "However, our overall revenue growth remained sluggish, in part reflecting continued weakness in Asia and, more recently, in Latin America."
HP's net revenue climbed 4 percent to $12.2 billion, compared with $11.8 billion in the year-ago quarter. Last year's figure, however, represented a 16-percent jump in revenue.
HP said U.S. revenue climbed 4 percent to $5.7 billion, but Asia-Pacific revenue dropped 20 percent in U.S. dollars.
Platt cited conditions in Asia and Latin America a "significant reasons for continued caution."
For the full fiscal year, HP reported a profit of $2.95 billion, or $2.77 per diluted share, on $47 billion in revenue, compared with 1997 earnings of $3.12 billion, or $2.95 a diluted share, on $42.9 billion in revenue.
HP (HWP) shares closed at 66-7/8, up 1-5/8, before slipping to 66 in after-hours trading. 
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Hewlett-Packard
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