/// HP To Take A Lot of Bitter Medicine In Earnings Report Today
We already know most of the bad news, and some of the good, though it was spare, that Hewlett-Packard will announce after the close of markets in New York today. It announced nearly everything worthy of note on Aug. 9 . The good news is that earnings on a per-share basis at $1 will be slightly higher than had been previously expected. The bad news is that those earnings will count only on a non-GAAP basis because HP intends this quarter to take a combined $9.5 billion to $9.7 billion in charges, the most in its history: $8 billion for a writedown in the value of its IT services unit, the company formerly known as EDS; And $1.5 billion to $1.7 billion for restructuring charges associated primarily with the voluntary retirement and firing of some 9,000 HP employees. The job reductions are only the first round of an expected a combined 27,000 cuts that will occur between now and 2015. HP CEO Meg Whitman has said the restructuring is needed to get HP down to a size where its longer term business prospects are more tenable. However the pressures on its many lines of business are numerous and intensifying. If the results of rival Dell, reported yesterday indicate anything, they imply that the state of the personal computer business, of which HP remains the global leader though only by a whisker , is dismal.
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HP To Take A Lot of Bitter Medicine In Earnings Report Today