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HP revenue falls in A-P, layoff notices sent

HP revenue falls in A-P, layoff notices sent

Hewlett-Packard posted revenue for its second quarter of 2002 in the Asia-Pacific region 13 per cent lower than for the second quarter a year ago, HP Chairwoman and CEO Carly Fiorina said in a conference call Tuesday.

The revenue announcement, the last before HP includes revenue from newly acquired Compaq in its results, indicated sharp revenue declines in Asia-Pacific's biggest markets, Japan and China.

Second-quarter revenue in Japan was down 17 per cent on the year-earlier period in dollar terms, although most of the fall could be attributed to the weakening of the Japanese yen, HP said.

HP saw a fall-off for its results in China, the second-largest IT and telecommunication market in the region after Japan. HP revenue in China for the second quarter of 2002 dropped 23 per cent from the year-earlier period, HP said.

HP said it had also begun notifying staff outside the US who will be losing their jobs as part of the integration of the two companies. Details of the workforce reduction program, its timing and associated charges in countries around the world will be provided at a briefing on June 4, HP said.

HP's Asia-Pacific operations will be run by Singapore-based Paul Chan, who was recently named overall regional general manager. China has been added to HP's Asia-Pacific geographic area, but Japan becomes a separate geographic division in the new HP structure.

While acknowledging the many challenges facing the company, Fiorina said that the new HP had made an encouraging start.

"We have a lot to prove and we're realistic about the hard work ahead, but we're also proud and excited about our clean sprint out of the gate," she said according a transcript of the conference call.


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