HP continues to buck flat economy with growing profit

HP's net income has grown for a third consecutive quarter

HP is the latest corporation to announce impressive profits and growth as it comes out of the recession.

Although the organisation continued to make money over the past year and a half, its net income had been diminishing each quarter.

But this latest quarter marks the third in a row that the company’s net income has grown.

HP's 2010 second-quarter results show that net income has risen by 28 per cent and revenue has grown by 13 per cent.

It recorded revenue of $30.8bn (£21.5bn), surpassing the $29.8bn from the same quarter last year.

The firm also obtained $2.2bn in net income over the quarter compared with $1.7bn year on year.

The figures from the latest quarter show that an increasing demand for PCs has been the key ingredient in HP’s success and is also helping the technology industry recover from the economic downturn.

HP has extensively broadened its product portfolio over the past few years, yet the company has its core business, PCs, to thank for its strong financial performance.

The company’s PC business was accountable for a third of its overall revenue, and the division’s revenue increased by 21 per cent in the latest quarter.

For 2010, HP predicts revenue of between $123.7bn and $124.9bn, surpassing analysts' forecasts of $123bn.