HP Released Q2 Financial Report

Hewlett-Packard has announced its second-quarter financial result of the 2014 fiscal year. The company reported $27.3 billion in revenue, down 1% year-over-year (YOY). Net earnings rose to $1.3bn from $1.1bn in the same period last year.

As revealed by Cathie Lesjak, Chief Financial Officer of HP, “By region, Americas revenue was $11.7 billion, down 6% YOY or down 4% in constant currency. In the U.S., revenue was impacted by key account run offs in enterprise services plus softness related to jet printing and in most EG business units. This was partially offset by strength in commercial PCs and networking. In Brazil, we experienced weakness across all of our businesses. EMEA revenue was $10.3 billion, up 4% YOY or up 2% in constant currency, driven growth in mature western European economies.”

Printing revenues were down 4.3% YOY to $5.8 billion, primarily due to lower supplies revenues (down 6% YOY). Despite the revenue decline, total hardware unit sales increased 1% YOY due to higher ink and laser hardware unit sales. Commercial Hardware revenue, on the other hand, has seen 1% YOY decline to $1.4 billion. Consumer Hardware revenue was $566 million, up1% year-over-year. Total hardware unit shipments grew 1% YOY.

CEO Meg Whitman said, “In printing, we saw very strong profitability and further traction in key initiatives like Ink in the Office and Ink Advantage as well as in graphics. However, weak toner sales continued to be headwind as the hardware installed based remains under pressure. We are focused on placing value-added units to support the installed based throughout the rest of fiscal ’14.”

“Ink in the Office and Ink Advantage units and revenue each grow double-digits and we grew share in both ink and laser hardware units. Supplies revenue was $3.9 billion, down 6% over the prior year period and made up 66.3% of printing revenue. Although the mix is down a point year-over-year, ink is a greater part of supplies mix which helps offset the negative impact of lower supplies on overall printing profitability.”

During the 2Q14 Earnings Call, Whitman revealed that HP would be cutting 10,000 to 16,000 jobs more than it previously planned.

(Source: Seeking Alpha)