Shortly after the announcement of radical restructuring at Hewlett-Packard (23.6% -21.80) (HP), the share of U.S. IT company in Wall Street has slumped drastically. In mid-morning New York trading, the paper quoted the end of the week at $ 23.42, an increase of more than 20 percent below the previous day's close. Shortly after the start of trading were HP papers even up to a new annual low of $ 22.75 by slumped.
The investors apparently punished by their reaction from the decision to cease all activities in the Smartphone and Tablet PC market and in future to concentrate on services for businesses and government agencies. At the same time, HP also introduced the PC business for discussion. Thus takes the world's largest computer manufacturers a step that made the rival IBM six years ago.
$ 10 billion
By the German CEO Leo Apotheker forced conversion comprises three steps: HP sets up the October production of tablet computers and smartphones. In addition to selling the PC business. By the end of the year HP computer could, under the name of another company being sold. Finally, the Group intends to take over the British software company Autonomy, which specializes in corporate clients for about ten billion dollars.
Had been rumors about a swap of the PC business, there have been several months already. Although it is responsible for the majority of sales from Hewlett-Packard, but at least raises profit. HP recently as March had rejected reports of a possible separation from the PC business as irresponsible. Whether there is also a loss of jobs was not immediately known. HP employs more than 300,000 people. For the conversion, the Group returned a billion dollars, as pharmacists said.
Purchase of Palm just last year
HP turns to a development which was initiated by the Chief Executive Officer Carly Fiorina. Under her leadership HP acquired Compaq Computer for $ 19 billion and has won the controversial business to the largest PC company in the world.
Then bought the Palo Alto-based HP just last year for $ 1.8 billion the smartphone pioneer Palm webOS with its operating system - now the production of smartphones and Tablet PCs with Palm software is set. In recent years the company has already made from pure PC-independent business and tries to focus increasingly on services for businesses.
This development was influenced by IBM, but also from Apple, and analysts said. "Apple has single-handedly pushed HP out of business with PCs, smartphones and tablets," the analyst Brian Marshall said of Gleacher & Co. in an interview. Instead of competing with Apple to consume, HP has decided to focus on business customers and thus compete with IBM, Oracle and Cisco.
Hewlett-Packard plans to cut losses
This concentration seems logical, after all pharmacists spent most of his working life at the German software company SAP, which also specializes in business software. "That his bread-and-butter business is," Marshall said. "Now he must deliver." Apple is a more aggressive rivals, said analyst Shaw Wu of Sterne Agee. "HP has probably noticed that it needs to limit his losses," he said. "And it makes sense to limit their losses sooner rather than later."
When you buy HP Autonomy pays $ 42.11 per share, 64 percent more than the last traded market value. Autonomy produces among other things, search for specific companies. It is one of the most expensive acquisitions in the 72-year history of Hewlett-Packard.
In the third quarter, HP grew its net profit rose nine percent to 1.93 billion dollars, equivalent to 93 U.S. cents per share versus 75 cents a year earlier. At the same time, the company revised its expectations for sales in the current year downward. How HP announced that sales rose last quarter by less than two percent to 31.2 billion dollars. For the current year, the company expects revenues from 127.2 to 127.6 billion dollars, slightly less than analysts expected.
Source derbund.ch
The investors apparently punished by their reaction from the decision to cease all activities in the Smartphone and Tablet PC market and in future to concentrate on services for businesses and government agencies. At the same time, HP also introduced the PC business for discussion. Thus takes the world's largest computer manufacturers a step that made the rival IBM six years ago.
$ 10 billion
By the German CEO Leo Apotheker forced conversion comprises three steps: HP sets up the October production of tablet computers and smartphones. In addition to selling the PC business. By the end of the year HP computer could, under the name of another company being sold. Finally, the Group intends to take over the British software company Autonomy, which specializes in corporate clients for about ten billion dollars.
Had been rumors about a swap of the PC business, there have been several months already. Although it is responsible for the majority of sales from Hewlett-Packard, but at least raises profit. HP recently as March had rejected reports of a possible separation from the PC business as irresponsible. Whether there is also a loss of jobs was not immediately known. HP employs more than 300,000 people. For the conversion, the Group returned a billion dollars, as pharmacists said.Purchase of Palm just last year
HP turns to a development which was initiated by the Chief Executive Officer Carly Fiorina. Under her leadership HP acquired Compaq Computer for $ 19 billion and has won the controversial business to the largest PC company in the world.
Then bought the Palo Alto-based HP just last year for $ 1.8 billion the smartphone pioneer Palm webOS with its operating system - now the production of smartphones and Tablet PCs with Palm software is set. In recent years the company has already made from pure PC-independent business and tries to focus increasingly on services for businesses.
This development was influenced by IBM, but also from Apple, and analysts said. "Apple has single-handedly pushed HP out of business with PCs, smartphones and tablets," the analyst Brian Marshall said of Gleacher & Co. in an interview. Instead of competing with Apple to consume, HP has decided to focus on business customers and thus compete with IBM, Oracle and Cisco.
Hewlett-Packard plans to cut losses
This concentration seems logical, after all pharmacists spent most of his working life at the German software company SAP, which also specializes in business software. "That his bread-and-butter business is," Marshall said. "Now he must deliver." Apple is a more aggressive rivals, said analyst Shaw Wu of Sterne Agee. "HP has probably noticed that it needs to limit his losses," he said. "And it makes sense to limit their losses sooner rather than later."
When you buy HP Autonomy pays $ 42.11 per share, 64 percent more than the last traded market value. Autonomy produces among other things, search for specific companies. It is one of the most expensive acquisitions in the 72-year history of Hewlett-Packard.
In the third quarter, HP grew its net profit rose nine percent to 1.93 billion dollars, equivalent to 93 U.S. cents per share versus 75 cents a year earlier. At the same time, the company revised its expectations for sales in the current year downward. How HP announced that sales rose last quarter by less than two percent to 31.2 billion dollars. For the current year, the company expects revenues from 127.2 to 127.6 billion dollars, slightly less than analysts expected.
Source derbund.ch
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