HP’s Historic Loss: CAN Meg Whitman Save the PC Giant? CAN ANYONE?
$30 BILLION IN DEBT, Watch VIDEO!
HP (HPQ) reported its worst quarterly loss in its 73-year history Wednesday.
The PC-maker suffered an $8.9 billion loss in its fiscal third-quarter, or $4.49 a share. The hit to HP's bottom line was due in large part to an $8 billion write-off of its 2008 acquisition of Electronic Data Systems Corp. (EDS)
Excluding one-time charges, HP earned $2 billion in the quarter, down from $2.3 billion a year-ago amid a 5 percent drop in overall revenues to $29.7 billion.
The company's major PC business slowed in the quarter as sales dropped 10 percent from the previous year. Printer and notebook sales were down 23 percent and 12 percent, respectively.
HP's stock was down nearly 7 percent in early trading Thursday to $17.92.
While HP undergoes a major restructuring to offset declining PC sales and fend off growing competition from Asian PC makers, the company's newly minted CEO Meg Whitman remains "confident" HP can maneuver through its difficulties.