HP reports that its profit increased 14 percent in its latest quarter, primarily because of cost-cutting measures and strong results in its Services division. HP’s Imaging and Printing Group (IPG), however, saw a 15 percent drop in sales over the quarter, relative to last year. Sales of its commercial printing equipment in the fourth quarter fell 38 percent, according to HP’s financial report, as sales of consumer printing units dropped by 14 percent.
Overall revenue generated by the company in Q4 declined by eight percent. More specifically, fourth-quarter revenue declined by three percent in the Americas to US$13.6 billion, while revenue declined 17 percent in Europe.
“HP’s solid performance in Services drove record profit and the accelerated pace in signings creates strong momentum going into 2010,” said CEO Mark Hurd. Services revenue increased by eight percent in HP’s latest quarter to US$8.9 billion.
Net revenues for HP’s 2009 fiscal year came in at US$114.6 billion, which is a three percent drop when compared with 2008 results.