HP Reports Q1 Net Earnings Of $1.5B, Up 11%

By Staff On Feb 26 2007 - 8:00am

Hewlett-Packard posted net earnings of $1.5 billion, up 11 percent, on net revenues of $25 billion for its first quarter, ended Jan. 31.

HP's personal systems group (PSG) saw its revenue grow 17 percent year-over-year to $8.7 billion with unit shipments increasing 19 percent. Notebook revenue grew 40 percent, but desktop shipments dropped 1 percent. The consumer portion of PSG revenue grew 28 percent compared with only 8 percent on the commercial side. PSG operating profit was $414 million, about 5 percent of total company revenue.

The imaging and printing groups reported a 7 percent increase in revenue to $7 billion year-over-year. Operating profit for this group was $1.1 billion, up from $973 million the prior year.

Supplies grew 11 percent, with commercial hardware up 2 percent, but consumer hardware revenue was flat. Printer shipments increased 18 percent overall, with consumer models up 16 percent and commercial printers up 21 percent.

HP's all-in-one product shipments increased 27 percent compared with the same time last year, with dedicated photo printers up 49 percent, color lasers up 35 percent and printer-based multifunction devices up 80 percent, the company reported.