HP bullish on technology outlook

Mark Hurd: We believe we held or gained in every segment

HP remains confident about the future, despite an overall slowdown in spending in the technology sector.

Chief executive Mark Hurd said in the company's fourth-quarter earnings statement that HP is doing well on all fronts, and that he expected sales to continue growing across all product ranges.

"We believe we held or gained in every segment [this quarter], each showing double digit growth," he said.

"Our intention is to get through this period without losing muscle. In 2009 we expect to save more than $1bn [£660m] per year and will also eliminate additional spending as necessary."

Overall HP revenue for the fourth quarter grew by 19 per cent, Hurd said, although currency fluctuations may cut this to 16 per cent. Overall annual revenues for 2008 were up 13 per cent.

HP's Personal Systems Group reported revenues up 10 per cent, split between a rise in notebook sales of 22 per cent and a drop in desktop systems sales of two per cent.

The acquisition of EDS has paid dividends thus far, according to the earnings statement, with HP Services revenue up 99 per cent to $8.6bn. Without adding the EDS contribution, revenue rose just 10 per cent.

However, HP's core printing division had a tough quarter, posting a drop in revenues of one per cent overall. Commercial hardware and consumer hardware revenues declined by 10 per cent and 21 per cent respectively, but this was slightly offset by printing supplies revenue rising nine per cent.