US IT group HP posted its quarterly results yesterday, showing improved profitability in almost all its divisions. This follows last week`s ouster of high-profile former CEO Carly Fiorina.
Quarterly revenue of $21.5 billion (R129 billion) was up 10% from a year earlier. Non-GAAP (Generally Accepted Accounting Practices) operating profit was $1.3 billion and non-GAAP earnings per share were $0.37.
HP reported a GAAP operating profit of $1.2 billion and $0.32 earnings per share.
While overall profitability improved, the group acknowledged that it has some work to do in improving net profitability.
"While we continue to make progress in growing our top line, there is work to be done to improve our profitability," says Robert Wayman, HP interim CEO and CFO. "As the board conducts a CEO search, our management team is focused on driving improved execution to serve our customers, strengthen our competitiveness and improve shareholder value."
During the quarter, on a year-over-year basis, HP`s revenue in Europe, the Middle East and Africa grew by 12% to $9.3 billion. In the Americas, it increased by 6% to $8.9 billion and in Asia Pacific/Japan, it grew 15% to $3.3 billion.
On a consolidated basis, when adjusted for the effects of currency (mainly due to the dollar`s weakness against the euro), first quarter 2005 revenue grew 5% year-over-year.
HP was also helped by an unexpected tax rate of 13.3% compared with the 20% that had been expected.
Ousted
Fiorina`s sudden exit surprised most financial markets and industry observers. She was considered a controversial CEO, especially over the way the Compaq merger was handled.
Apart from having a high media profile, Fiorina was also a member of President Thabo Mbeki`s Presidential Advisory Council on Information Society. She attended the council`s September meeting held soon after the telecommunications liberalisation announcement by communications minister Ivy Matsepe-Casaburri.
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