HP upbeat on first quarter performance

HP has reported a 20 per cent rise in profits

HP cited strong PC and printer sales as contributing to a solid first quarter. Profits jumped by 20 per cent from the same period last year to reach £3bn (£1.92bn), while net revenue rose eight per cent to $31.2bn (£19.9bn).

Consumer technology was a particularly strong seller for HP. The company posted big gains in PC and printer sales, gaining four points in PC market share. Revenues from its printer branch were up by four per cent.

However, other parts of HP's operations fared less well. Software sales remained flat, while the services division saw revenues drop by one per cent.

The company's recent purchase of EDS was credited in helping to drive revenue. HP estimated that the products and services brought in by the merger accounted for nearly 16 per cent of revenues.

"I believe HP has the best and broadest portfolio in the industry. We are number one or two in virtually every category where we compete," said HP chief executive Mark Hurd.