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Last Updated: Thursday, 17 November 2005, 23:05 GMT
Investors cheer Hewlett-Packard
Mark Hurd
Mr Hurd's plan appears to be working
Investors cheered as the US computer giant Hewlett-Packard (HP) reported figures that suggest it is recovering.

HP's $416m (242m) profits for the August to October quarter fell far short of the $1.091bn made during the same period last year.

But investors accepted HP's explanation that this was due to the $1.1bn cost of a restructuring announced in summer.

Sales rose for all its units, so investors decided to ignore the 62% fall in profits. HP shares rose 6%.

"The results look very, very positive pretty much across the board," said SG Cowen analyst Richard Chu.

"Throughout the last six to nine months, HP has really been flexing its muscles."

"We've been doing a lot of things in the company at the same time and we've been doing that well," said HP chief executive Mark Hurd.

"HP delivered another strong quarterly performance, with balanced revenue growth, good cost discipline, improved margins in key businesses and strong cash flow," said Mr Hurd, who earlier this year replaced Carly Fiorina after she was ousted.

Soon thereafter, Mr Hurd cut 14,500 jobs as part of a restructuring aimed at slashing costs by $1.9bn per year.

Hewlett-Packard cuts 968 UK posts
13 Sep 05 |  Business
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12 Sep 05 |  Business
Hewlett-Packard cuts 14,500 staff
19 Jul 05 |  Business
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17 May 05 |  Business

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