AAA Oct. 13, 2012
HP on the ropes
By Michael Liedtke
Hewlett-Packard is a blight on the Dow Jones industrial average. Over the past 12 months only three of the 30 stocks in the Dow are in negative territory. Intel is down 7 percent and Alcoa has dropped 14 percent, but HP has plunged by 44 percent. Overall the Dow is up nearly 16 percent in that time.
The technology conglomerate hired Meg Whitman a year ago to head its latest turnaround efforts, but the former eBay CEO has yet to impress investors.
The magnitude of HP’s problems came into sharper focus last week. Less than a month after reporting the biggest loss in the company’s history, HP released a forecast that its earnings would fall by as much as 16 percent next year as revenue continues to shrink. Whitman said it could be 2015 before revenue growth begins to accelerate again. What’s more, a report by Gartner, a research firm, determined Lenovo has surpassed HP has the world’s largest PC maker.
Here’s a snapshot of HP and its recovery efforts.Associated Press
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