HP warns of disappointing Q2 earnings

HP warns of disappointing Q2 earnings

Hewlett-Packard warned this week that earnings for its second fiscal quarter ending April 30, 1998, would be well below expectations.

The California-based company cited its product mix, pricing pressures in the PC market, and problems in Asia as factors which are likely to drag down earnings in the company's second quarter of fiscal 1998.

"While we did achieve good revenue and order growth this quarter, we are disappointed that our early calculations show earnings per share coming in well short of expectations," said Lew Platt, HP chairman and CEO, in a statement issued after the close of the New York Stock Exchange. The company expects to achieve earnings per share of US65 cents, down from US75 cents a share for the same period the previous year.

HP officials could not be reached for comment.

Final results will be announced Friday at 5.00 am, Pacific Daylight Time.

HP and other computer vendors have been engaging in fierce price wars in recent months, offering PCs which cost under $US1000. In March, HP also lowered prices on its NetServer line of PC servers, dropping prices for some units by as much as 20 per cent.

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