Hewlett-Packard shares plunge 13% on turnaround fears

HP ink cartridges Hewlett-Packard hopes to cut it workforce by 8% by 2014

Related Stories

Hewlett-Packard shares plunged to a 10-year low after its boss said it will take time to turn around the company that built its success on printers and computers.

Meg Whitman said revenue for 2013 would decline during what she called a "fix-and-build year."

Traders in New York sent HP shares down 13% to $14.91 in response.

The firm had announced an $8.8bn (£5.5bn) loss for the last quarter and plans to cut some 27,000 jobs by 2014.

Detailing its turnaround strategy, HP said its profit for the fiscal year would be between $3.40 and $3.60 per share, far below analysts' expectations of $4.18 a share.

But by 2016, Ms Whitman expects the company's revenues to be growing in line with US GDP, with "operating profit growing faster than revenues, industry-leading margins and disciplined capital allocation".

In its enterprise division, HP anticipates revenue declines of 11% to 13% in the fiscal year.

The company, like rival Dell, is struggling to offset faltering PC sales with other revenue.

Ms Whitman replaced her predecessor, Leo Apotheker, who was ousted after just 11 months on the job.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • The OfficeIn pictures

    Fifty landmark shows from 50 years of BBC Two


  • French luxury Tea House, Mariage Freres display of tea pots Tea for tu

    France falls back in love with tea - but don't expect a British cuppa


  • Worcestershire flagFlying the flag

    Preserving the identities of England's counties


  • Female model's bottom in leopard skin trousers as she walks up the catwalkBum deal

    Why budget buttock ops can be bad for your health


  • Two women in  JohanesburgYour pictures

    Readers' photos on the theme of South Africa


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.