Hewlett Packard sees profits rise

Hewlett-Packard said this is no time to relax, and hard work lies ahead

Hewlett-Packard, the world's largest maker of printers and second-biggest computer firm, has unveiled earnings that topped Wall Street expectations.

The company said that net profit in the three months to 31 January was $1.23bn (£706m), up from $943m a year earlier.

It also expects profit in the current quarter to at least match that level.

The company has been cutting costs and prices in an effort to lure customers from rivals, and has reported three straight quarters of earnings growth.

Hewlett-Packard shares climbed 2.3% to $32.40 during after hours electronic trading in New York.

'Hard work remains'

"Growth was balanced across most of our businesses and geographies, cash flow was strong and we were disciplined in controlling costs," said Mark Hurd, Hewlett-Packard's chief executive.

"While hard work remains ahead of us, our efforts are starting to show results."

Mr Hurd took over from former CEO Carly Fiorina last year after Hewlett-Packard's purchase of Compaq.

In an effort to trim costs, he announced plans to cut more than 15,000 jobs and save almost $2bn a year.

The company said that during the fiscal first quarter sales rose by 5.6% to $22.7bn.

Sales in the firm's computer division increased by 8%, as it did in the key imaging and printing group. Supply revenue rose 11% and at its enterprise storage and servers group, revenue rose by 5%.