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Hewlett-Packard warns on profits Technology company to slash 3,000 jobs

MSNBC STAFF AND WIRE REPORTS PALO ALTO, Calif., April 18 — Computer and printer maker Hewlett-Packard Co. on Wednesday said it expects to report an earnings shortfall for the second quarter and said it would cut up to 3,000 management jobs.

HEWLETT-PACKARD SAID it expects earnings per share to be between 13 cents and 17 cents for the quarter. This estimate includes approximately $150 million of one-time inventory and capacity writedowns associated with some of the company’s consumer products.

Analysts surveyed by Thomson Financial/First Call had been expecting earnings of 35 cents a share for the quarter although those estimates typically exclude the impact of one-time writedowns. The company is the latest high-profile technology company to warn about its results, citing a rapid deterioration in consumer information technology spending around the world. Hewlett-Packard chairman and chief executive CEO Carly Fiorina said in a press release, “When we issued our previous second fiscal quarter guidance, we had limited visibility into the extent of the U.S. consumer and commercial down turn, its potential impact on other regions and the continuation of adverse currency effects. At this time, it is quite clear that the U.S. downturn in the consumer market is now spreading to other regions, notably Europe. “Recent European PC market data suggests the European slowdown is beginning to mirror the pattern we saw in the U.S. - growing softness in the retail sector and increasingly competitive pricing moves followed by a more subtle but just as meaningful slowdown in the enterprise space.”

-- Anonymous, April 18, 2001

Answers

We're getting a bit nervous here. The company that owns Sweetie's firm announced last week it doesn't represent the image they want to project--even though it's been highly profitable and will continue to be (unless the bottom REALLY drops out). Microsoft has indicated an interest, but nothing definite yet.

-- Anonymous, April 18, 2001