HP Reports 1Q2015 Revenue Impacted by Strong US Dollar

HP reported revenue of $26.8 billion for the quarter ending Jan. 30, 2015 representing a decline of 5% year over year (YoY). Net earnings were $1.4 billion, down by 4% YoY.

Printing supplies revenue was $3.601 billion,down 5% YoY with a 19.2% operating margin. Total hardware units were down 4% with Commercial hardware units flat and Consumer hardware units down 6%. Supplies revenue was $5.543 billion dollars, down 5%.

“With the first quarter of fiscal 2015 now behind us, the HP turnaround remains on track,” said Meg Whitman, HP’s Chairman, President and Chief Executive Officer.  “We grew operating profit margins across all of our major business segments, increased investment in innovation, and executed well across key areas of our portfolio and in our separation activities.  Our progress continues as we head into Q2.”

Whitman claimed that HP’s problem is the sharp rise in the value of the dollar. This makes it harder for the technology giant to profitably sell much of its computer hardware and software in overseas markets.

“In the past three months,” Whitman explained, “we lost $1.5 billion in operating profit to the stronger dollar,” adding that “HP is taking steps to insure against further strengthening of the dollar.” She lowered the company’s forecast earnings for the year by about 7 percent.

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