News
HP's commercial print sales drop by 38% in Q4
A 15% drop in sales within HP's Imaging and Printing Group (IPG) to $6.5bn (£3.9bn) has contributed to a company-wide 8% revenue decrease in its fourth-quarter results.
Sales of its commercial print equipment fell 38%, while consumer print units also dropped – by 14%. Operating profit within IPG came in at $1.2bn, equivalent to 18.1% of revenue.
HP's revenues stood at $30.8bn with GAAP diluted net earnings per share of $0.99, compared with $0.84 in the same period last year.
Mark Hurd, chairman and chief executive, said: "HP’s solid performance in Services drove record profit and the accelerated pace in signings creates strong momentum going into 2010.
"Our operational execution and improving cost structure generated strong quarterly and year-end results. We expect to outperform the market due to our significant scale, broad portfolio and market-leading position."
Net revenues for HP's full fiscal year 2009 were $114.6bn, which represents a 3% drop compared with the same period a year earlier. The company reaffirmed its first quarter and full year guidance for 2010, anticipating revenues of between $29.6bn to $29.9bn for Q1.
HP shares rose slightly on the news, opening on Monday at $51.02 on Friday's close of $50.04.
Mark Hurd: 'Solid performance'
Comments
Buddy 'ell - 25 November 2009
Interesting, when you look at this with OCE's problems, should one of the market leaders be faced with such a drop off in sales,when digital is being pushed as the way forward for printers?
You could read into this what some of us suspect and that is most suitable work has already migrated to digital and the process has found its mark. Has digital peaked in the commercial sector, just leaving more specialist business such as short run book as having the potential to transfer. Growth is likely to show through pubishing and web to print opportunities which are really new work sources rather than existing. It will be something worth watching as the digital manufacturers announce performance figures. Consolidation will become a key move for the bigger players if the trend continues.
'Not A Doctor' (NDCT) - 25 November 2009
For me, the problem remains that after three to five years, much of the kit has no value left - it depends entirely on the original manufacturer supporting it for service and parts.
So anyone making a commitment to take on an expensive piece of digital equipment simply has to get the throughput (whether committed or not contractually) or they end up after five years with a thumping great loss.
The suggestion that some of the big players may merge or even fail is a further caution.
A Prontaprint Franchisee - 25 November 2009
Consolidation is inevitable in the copier/digital market, with a consequent increase in click and consumable rates.
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