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Last Updated: Tuesday, 17 May, 2005, 22:17 GMT 23:17 UK
HP boss says company must improve
Hewlett-Packard chief executive Nick Hurd
HP boss Mark Hurd says the company must be more competitive
Hewlett-Packard has reported a jump in second quarter profits and sales but its new boss has admitted that the business has "room for improvement".

The US computer and IT giant enjoyed a 7% rise in sales in the three months to the end of April while net income came in 9% higher at $966m (526m).

HP was thrown into turmoil earlier this year when chief executive Carly Fiorina quit after a dispute with its board.

New chief executive Mark Hurd said the company had had a "solid quarter".

However, Mr Hurd - who joined the company on 1 April - said much work needed to be done to make the firm more competitive.

"Our overall performance leaves room for improvement in many of our businesses," he said in a statement.

All things considered I think it was an OK quarter
Shawn Campbell
Campbell Asset Management

"We hope to provide details as soon as soon as our plans are finalised that will move us toward that objective."

Over the most recent trading period, HP's generated sales of $21.6bn, up from $20.1bn for the corresponding period last year.

Net income increased to $966m from $884m last year.

Although the figures came in at the lower end of market expectations, HP's shares closed up 54 cents at $21.55 in Tuesday trading.

"All things considered I think it was an OK quarter," Shawn Campbell, a financial analyst with Campbell Asset Management, told Reuters.

He said HP had performed better than some other similar companies.

"Considering what Lexmark did, I consider this a win for Mr Hurd and Hewlett-Packard."

Fiorina resigns as chief of HP
09 Feb 05 |  Business
HP appoints new chief executive
29 Mar 05 |  Business

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