HP sees profits increase by 26%

THE world’s largest personal computer maker, Hewlett-Packard, yesterday said first-quarter profit rose 26% after the company won consumer sales away from Dell Inc.

Net income increased to $1.55 billion, or 55 cents a share, from $1.23bn, or 42 cents, a year earlier, Palo Alto, California-based Hewlett-Packard said today in a statement. Sales in the quarter ended January 31 rose 11% to $25.1bn. Excluding some costs, profit was 65 cents, beating the 63 cents expected on average by analysts.

Chief executive Mark Hurd nabbed the PC market lead from Dell for the second straight quarter by offering low-priced notebook computers and selling them with help from retail partners. PC shipments jumped 24% last quarter while Dell’s dropped 8.4%, according to researcher IDC.

“There’s a lot more growth to be had,” said San Francisco-based Pacific Heights Asset Management chief executive Michael Cuggino, which manages more than $900 million, including Hewlett-Packard shares.

“While the stock is not cheap at these levels, it’s fairly priced given the prospects for the company,” he said.

Hewlett-Packard’s shares fell to $42.88 in trading after the announcement. They rose 36 cents to $43.13 at 4pm in New York Stock Exchange composite trading. The stock is at its highest level in six years.

Hewlett-Packard has been in Ireland since 1995 and employs 4,000 people here.