HP’s Irish firms in good health

ANY decision by global technology giant Hewlett-Packard (HP) to sell its computer manufacturing division is unlikely to have any adverse effect on the company’s Irish operations, where about 4,500 people are employed.

Earlier this week, HP downgraded its full-year revenue estimates — from a best-case scenario of $130 billion (€90.3bn) to $127.6bn (€88.7) — saying the figure would come up short of market expectations. It also said that its earnings per share for the full year would be nearer $3.70 than its initial estimate of $4.27.

The tech giant followed that statement up yesterday with the news that it is considering disposing of its personal computer manufacturing division, as well as its smartphone business, in order to buy British software company Autonomy and move into the specialist software realm. The British company — which was established by Carrick-on-Suir native Mike Lynch who stands to make £504 million (€581m) from the takeover — develops software for email services. The rumoured $10.3bn (€7.2bn) consideration, should it succeed, would rank the deal as HP’s third-largest acquisition.

HP employs between 4,000 and 5,000 people across manufacturing, research and development and administrative roles in Leixlip, Galway, Dublin and Belfast. Its main manufacturing facility, in Leixlip, focuses on the development of HP’s inkjet printers.

While no comment was forthcoming from HP’s Irish operations yesterday, a spokesperson for IDA Ireland said there is no concern for the safety of any jobs at the company’s operations here — with the spokesperson adding that the business remains fully committed to Ireland as a manufacturing location.

“We’re continuing to work very closely with HP on a range of development projects in high growth areas,” the IDA said.

This year and last have actually seen HP boost their job numbers here; most recently, in April, by adding 50 people to its engineers to its high-tech facility in Galway, a facility which won more than 100 new jobs at the end of last year.

But while things remain healthy for HP’s Irish operations, the wider group picture is not as bright. Standard & Poor’s yesterday placed HP on credit watch after this week’s various statements from the company. Its share price tanked by 20% in trading yesterday, falling to its lowest level for more than 30 years.