HP has unveiled its second quarter financial results, showing net revenue decreasing three per cent to $27.4bn (£17.7bn) from a year ago, with operating profit down 12 per cent for the year at $2.3bn (£1.5bn).

Sales grew nine per cent in the Americas, but dropped 11 per cent in Europe and 10 per cent in the Asia Pacific region to $10.6bn and $4.7bn respectively. Non-US revenue was 64 per cent of total sales.

HP also said it would be reducing its workforce globally by two per cent, as part of an "ongoing effort to strengthen our cost structure in order to improve our competitiveness and prepare for future growth."

Individually, HP's technology arms all showed revenue declines, except for the services sector, boosted by the EDS acquisition, which contributed to a 99 per cent revenue increase to $8.5bn.

Enterprise Storage and Servers revenue dropped 28 per cent to $3.5bn, Personal Systems Group revenue declined 19 per cent to $8.2bn, and the Image and Printing Group recorded $5.9bn, down 23 per cent. HP Software revenue declined 15 per cent to $880m, while HP Financial Services reported revenue down six per cent to $641m.

HP recorded operating profit increases from the Services and HP Software groups, but profit decreases in the hardware-related arms of the business.

HP chief executive Mark Hurd said in a conference call on the financial results that the company did well when the market was declining overall.

"HP was gaining market share in many important segments," he said.

Hurd was upbeat about HP's prospects when the downturn ends.

"We like our chances, when the rebound does occur, to be a major participant in the market, because of what we're doing right now. I'd say that the winners are determined in the downturn," he said.

HP predicted revenue to be flat to down two per cent sequentially for the third quarter, while for the 2009 financial year revenue would decline four to five per cent.