HP Q4 profit up 5% at $2.53 bn on robust sales

HP Q4 profit up 5% at $2.53 bn on robust sales

New York: Technology giant Hewlett-Packard (HP) has reported 5% growth in net earnings to $2.53 billion for the quarter ended 31 October, 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 $2.42 billion, HP said in a statement.

The company’s net revenue rose to $33.27 billion in the fourth quarter ended 31 October from $30.77 billion in the same quarter of last fiscal, clocking a gain of 8%.

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% and accounting 10% of the overall company’s revenue.

While revenue from Asia Pacific operations swelled by 8% to $5.8 billion, revenues rose by 10% in the Americas to $15.1 billion and it surged 6% in Europe, the Middle East and Africa to $12.4 billion.

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

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

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

Personal Systems Group revenue increased 4% to $10.3 billion in the quarter under review. HP maintained its leading market share position in PCs worldwide, with a 2% growth in unit shipments.