View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
May 19, 1988

DETAILS BEHIND HEWLETT-PACKARD FIGURES RENEW FEARS OF US RECESSION

By CBR Staff Writer

Those fiscal second quarter figures from Hewlett-Packard Co – net up 25% at $202m on sales up 24% at $2,500m (CI No 932) didn’t go down at all well with the market, which trimmed $4.625 off the price at $57.75. Reason was that the company’s gross and pre-tax margins showed year-to-year and sequential declines, and domestic orders came in significantly below expectations. The company saw a shift in its product mix to lower margin items like personal computers and low-end printers, and away from more profitable minicomputers. Moreover domestic US orders for the quarter were up only 11% at $1,140m, down from $1,170m in January, boding ill for future quarters and raising recessionary fears. And even with strong international orders – helped by the weak dollar, the sluggish US figure pulled the total down to 19.7% compared with 24% sales growth.

Topics in this article :
Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU