HP'S Q3 PROFIT MEETS TARGET

       Hewlett-Packard's CEO gives bullish outlook as economy improves
       Hewlett-Packard, the world's largest personal-computer maker, reported tjhird-quarter profit tha tmet analysts' estimates after job cuts and other expense reductions helped make up for sluggish technoloy demand.
       Excluding some costs, profit was 91 cents a share in teh quarter end July 31, Hewlett-packard said in a statement yesterday. Analysts surveyed by Bloomberg anticipated 90 cents.
       Chief executive officer Mark Hurd cut salaries, eliminated workers and reduced marketing expenses to counter the slump n technology spending.
       Revenue from computer services grew, boosted by Hewlett-Packard's US$13.2 billion (Bt450.5 billion) acquisition of Electronic Data Systems.
       "Services revenue is up big, and that shows me that heyy will constinue to grow that business an the integration is growing well," said James Brehm, an analyst at the research firm Frost and Sullivan in San Antonio. "If HP is any indication, we may be turning the corner economically."
       Third-quarter net income dropped 19 per cent to $1.64 billion, or 67 cents a share, from $2.03 billion, or 80 cents, a year earlier. Sales fell 2.1 per cent to $27.5 billion in the period. Analysts had estimatd $27.3 billion.
       "It's just a bunch of good numbers, we beat the revenue and we beat the EPS[earnigns per share]," Hurd said in an interview. "When you look at the companies that have been reporting, it's good news to see someone beat a revenue number in general." Revenue this quarter will grwow about 8 oer cebt frin tge orevuiys three months, the company said, suggesting about $29.6 billion.
       Excluding some costs, profit will be about $1.12 a share. Analysts on average anticipated sales of $29.8 billion.
       Revenue from printers and supplies, such as ink, fell 20 per cent to $5.7 billion. Printer shipments dropped 23 per cent. Profit from that business was $960 million, yielding a margin of 17 per cent.
       Third-quarter revenuein Hewlett-Packards' server and storage business declined 23 per cent to $3.7 billion. Sale in the PC u nit fell 18 per cent to $8.4 billion last quarter. Unit shipments climbed 2 per cent.
       The operating profit margin in the business narrowed to 4.6 per cent, fromo 5.7 per cent a year earlier.
       Hewlett-Packard took the PC market lead from Dell in 2006, and has expanded that edge every quarter since then.
       The company relies on a network of 80,000 retailers, including the Best Buy and Wal-Mart Stors chains.
       To attract more price-conscious shoppers, the company has expanded into netbooks, stripped-down laptops that typically sell for less than $400.
       In the calendar, second quarter Hewlett-Packard's PC shipments rose 2.8 per cennt, giving it a 19.6 - per -cent share of the worldwide market, according to gartner. That contrasted with a 17-per-cent drop in PC shipments for dell, which reports its earnings on August 27.
       EDS helped Hewlett-Packard increase services revenue 93 per cent last quarter to $8.5 billion. The profit margin was 15 per cent, up from 13 per cent a year earlier.
       The business, which accounts for about 30 per cent of sales, earns higher profit margins than Hewlett-Packard's hardware divisions.
       The company ranks second to International Business Machines in that market.
       Hurd is expanding in other areas as well. Teh company's ProCurve is challenging Cisco Systems in the newtworking-equipment field.
       "I feel very good about HP being the beneficiary of great tings when this economy turns aroudn," hurd said.
       "In these kind of economies, good companies can perform."
       AT A GLANCE
       Chief executive officer Mark Hurd cut salaries, eliminated workers and reduced marketing expenses to counter the slump in technology spending.
       Revenue from computer services grew, boosted by Hewlett-Packard's $13.2 bilion (Bt450.5-billion) acquisition of Electronic Data Systems.
       "It's just a bunch of good numbers, we beat the revenue and we beat the EPS [earnings per share]," Hurd said in an interview. "When you look at the companies that have been reporting, it's good news to see someone beat a revenue number in general."
       "I feel very good about HP being the benficiary of great things when this economy turns aroud," Hurd said.