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11/18/2008
06:45 PM
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HP Foresees Strong 4th Quarter, Despite Economy

Without EDS revenue added to the total, HP would have experienced a 5% growth in revenue for the year, or 2% after adjustment for the effects of currencies.

Hewlett-Packard announced strong preliminary fourth-quarter 2008 results Tuesday, with revenue increasing 16% over the same quarter a year ago to $33.6 billion. The increase would have been 19% without currency adjustments, although the jump in revenue also reflects the result of the EDS acquisition.

Without EDS revenue added to the total, HP would have experienced a 5% growth in revenue for the year, or 2% after adjustment for the effects of currencies.

"HP delivered another solid quarter as it continues to benefit from global reach, diverse customer base, broad portfolio, and numerous cost initiatives," CEO Mark Hurd said in a statement announcing the preliminary results. He predicted HP will emerge from the current economic downturn with increased market share and expanded earnings. As 2009 progresses, HP will be "a stronger force" in the computer industry, he said.

HP projects the first quarter of its fiscal 2009 will see $32 billion to $32.5 billion in revenue; earnings per share will be in the range of 80 to 82 cents, after deducting an unfavorable currency impact of 5%. Currency impacts are likely to extract a steeper toll in the successive 2009 quarters of 6% to 7%, HP predicted.

"Our ability to execute in a challenging marketplace differentiates HP," said Hurd, who's also HP's chairman.

For the full fiscal year 2009, HP expects revenue of $127.5 billion to $130 billion. HP has not yet reported revenue for fiscal 2008 but will do so Nov. 24.

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