HP Q4 profit up 5 pc at USD 2.53 bn on robust sales

NEW YORK: Technology giant Hewlett-Packard ( HP) has reported 5 per cent growth in net earnings to USD 2.53 billion for the quarter ended October 31, on the back of robust sales of server and storage business and strong performance in emerging markets, including India.

In the year-ago period, the company had a net earning of USD 2.42 billion, HP said in a statement.

The company's net revenue rose to USD 33.27 billion in the fourth quarter ended October 31 from USD 30.77 billion in the same quarter of last fiscal, clocking a gain of eight per cent.

The company has attributed its decent quarter numbers to demand in PC, server and storage business and good performance in BRIC (Brazil, Russia, India and China) countries.

"HP continued to execute in the fourth quarter, delivering growth, expanding margins and increasing earnings per share in double digits.

We continue to invest in the business, in sales and in R&D, while driving further efficiencies," HP Executive Vice-President and CFO Cathie Lesjak said.

During the quarter, BRIC countries have emerged as the best performer with revenue increasing by 12 per cent and accounting 10 per cent of the overall company's revenue.

While revenue from Asia Pacific operations swelled by eight per cent to USD 5.8 billion, revenues rose by 10 per cent in the Americas to USD 15.1 billion and it surged 6 per cent in Europe, the Middle East and Africa to USD 12.4 billion.

Looking ahead, the company said it has raised its revenue forecast to USD 126 billion for the full fiscal year 2010.

HP said its revenue from Enterprise Storage and Servers (ESS) reported total revenue of USD 5.3 billion in the fourth quarter, up 25 per cent from year-earlier.

Besides, the company said its services revenue increased 0.4 per cent to USD 9 billion in the fourth quarter, while software revenue climbed roughly 1 per cent to USD 974 million.

Personal Systems Group revenue increased 4 per cent to USD 10.3 billion in the quarter under review. HP maintained its leading market share position in PCs worldwide, with a two per cent growth in unit shipments.