Overseas demand lifts HP profits

Hewlett-Packard is the world's top PC maker

US computer maker Hewlett-Packard (HP) has reported a rise in profits for the three months to the end of April, boosted by demand outside the US.

Quarterly net income was $2.1bn (£1.1bn), up 16% on the previous year.

HP was helped by strong sales overseas where it generates two-thirds of its revenue, with fastest revenue growth in emerging economies.

Revenue grew 16% in Europe, the Middle East and Africa to $11.9bn, trumping the 4% growth to $11.1bn in the US.

"HP turned in another strong quarter, supported by improvement across our businesses," said the firm's chairman and chief executive Mark Hurd.

The company increased its revenue target for the year to be between $114.2bn and $114.4bn, up from previous guidance of $113.5bn to $114bn - showing that the faltering US economy is not holding HP back.

Last week, HP struck a deal to buy the information technology provider Electronic Data Systems (EDS) for $13.9bn (£7bn) to better compete with IBM in the technology services market.