Hewlett-Packard nets higher profit by 5%

The company reported a profit of $1.5 billion, up 44 per cent from 2005 and delivered yet another solid quarter.

Technology giant Hewlett-Packard posted higher earnings and revenue Wednesday, sending the company's shares up by some five per cent in after-hours trading.

HT Image

The company, which is one of the world's largest makers of printers, personal computers and other technology equipment, said sales rose five per cent to $21.9 billion in its fiscal third quarter, up from $20.8 billion a year ago.

The company reported a profit of $1.5 billion, up 44 per cent from 2005 and representing a continuation of the positive results since chief executive Mark Hurd took over from Carly Fiorina in early 2005.

"HP delivered another solid quarter with strong revenue growth, improved margins and healthy cash flow," Hurd said in a statement. "We gained share without sacrificing margins."

Sales in HP's personal computer group rose eight per cent to $6.9 billion, thanks largely to strong sales of notebooks.

HP's printing division saw sales grow five per cent to $6.2 billion as printer shipments increased 15 per cent year-over-year.

Sales of servers rose only three per cent to $4.1 billion, while sales from the company's services division increased one per cent to $3.9 billion.