High European sales boost HP's figures

HP still has a plan for printing, despite flat growth

Strong European performance was a major contributor to the financial results last week that pushed up HP’s share price by almost five per cent.

Europe, Middle East and Africa sales were 43 per cent of overall business in the first
quarter, with revenue growth up 15 per cent year on year to $12.3bn (£6.3bn).

Global operating profit was $2.6bn (£1.3bn) for the period, up 42 per cent. Total revenue was also up, by 13 per cent or $3.4bn (£1.7bn), to $28.5bn (£14.7bn).

The firm’s strongest growth areas by product were the PC, software and services divisions, which all saw double-digit rises in the quarter.

Despite flat growth in the core printing and imaging business ­ because of continuing price pressure in the consumer market ­ HP has a clear strategy.

“The inkjet printer market is not growing, but other parts where we have put in a lot of effort are strong, notably the graphics and multi-function printer businesses,” said European managing director Francesco Serafini.

“The model is to increase sales of printer units, then see an improvement in use and consumables.”

PC sales rose 24 per cent to $10.8bn (£5.6bn), with unit shipments up 27 per cent. Notebook sales climbed 37 per cent, while desktop PC revenue increased 15 per cent.

The strong performance reflects the success of HP’s focus on selling to high-spending multinational companies, according to UK managing director Steve Gill. The company recruited 2,000 extra sales personnel last year.