Hewlett Packard shares slump after price cuts

SHARES of Hewlett-Packard Co, the world’s second-biggest computer maker, fell as much as 12% after the company said it missed analysts’ third-quarter sales and profit estimates and cut personal computer prices too much.

Hewlett-Packard’s PC division, which had a loss after two profitable quarters, was “overly aggressive” in reducing prices to compete with Dell, said chief executive Carly Fiorina. The business-computer unit also had a loss, the fifth straight since Palo Alto, California-based Hewlett-Packard acquired Compaq Computer Corp last year.

Fiorina said last year the $18.9 billion Compaq deal would boost sales of server computers and services to companies. The third quarter ended July 31 had comparable results with Compaq in the year-ago period for the first time and shows the company relied on cost cuts and printers for profit, investors said.