Hewlett-Packard profits rise on cost cutting

Hewlett-Packard has cut 6,700 jobs this year to make savings

Hewlett-Packard (HP) has seen its latest profits rise 18% after cost-cutting work offset another sales fall.

The world's largest maker of personal computers made a net profit of $2.4bn (£1.4bn) in the three months until the end of September.

This compares with a profit of $2.1bn a year earlier. Its revenues for the quarter were down 8% to $30.8bn.

HP's results were in line with market expectations. The firm has cut 6,700 jobs this year to trim costs.

Takeover trail

Its profits were further lifted by its 2008 purchase of technology services company Electronic Data Systems for £13.9bn.

HP said the results were "strong" and that it expected sales to rise next year.

Earlier this month HP announced that it would buy network systems maker 3Com in a deal worth $2.7bn.

This acquisition is expected to be completed in the first half of 2010.