HP gushes bad news
( 2001-06-07 11:15) (7)
Technology giant Hewlett-Packard offered a gloomy earnings forecast Wednesday and said it was cutting jobs to prepare for a global tech business slump.
"We are now addressing what is clearly becoming a global slowdown," said company CEO and chairman Carly Fiorina, who said she is now "cautious" about meeting the consensus earnings estimate of 23 cents a share for the third quarter.
Fiorina told analysts she is now "convinced" the tech slowdown is "clearly spreading" to Asia and Latin America. While the company has earlier made cautious comments regarding the environment in South Korea, Fiorina is now "for the first time" concerned about demand in China.
Sales during the month of May were "soft in all regions" in both the consumer and corporate segments, Fiorina told the analysts.
The company has put on hold anticipated acquisitions and is taking such steps as asking staffer to take a further six days of vacation in the second half of the year.
Shares of the company slipped 4.46 percent, or US$1.34, to 28.71 at the close of regular trading Wednesday.
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