Global IT spending to slow down


10-06-2001

Hewlett-Packard warned it expects the slowdown in IT spending spreading beyond the US and Europe.

The company said that it might well not meet already lowered forecasts, and that May sales in both consumer and enterprise markets in all regions were soft.



'While it is still early in the quarter, May was softer than expected and we are now addressing what is clearly becoming a global slowdown. We are taking additional steps to generate revenues and reduce costs while continuing to implement our long-term growth strategy,' said Carly Fiorina, HP's CEO.



HP is also implementing additional expense reductions to increase the probability of achieving the current consensus analyst Earning Per Share (EPS) estimate of USD 0.23.



Analysts pointed out that HP's warning follows Sun Microsystems announcements that April and May were very slow, and that investors will be eagerly waiting for Intel's update on its current quarter today.



http://www.hp.com/hpinfo/newsroom/press/06jun01a.htm