TONERNEWS: Hp Offers a Bleak Forecast For 201526 Feb, 2015
Hewlett-Packard has lowered its financial outlook for the year after another quarter of declining sales and profit.
CEO Meg Whitman is trying to get HP in shape before the company splits itself in two later this year. One half will sell PCs and printers and the other will focus on back-end business products.
But the strengthening dollar is making life tough for U.S. multinationals and HP is no exception. A strong dollar can have several negative effects, including making overseas sales seem smaller when they're translated back into the home currency.
"As is the case with many U.S.-based companies, this currency challenge is having a significant impact on HP's financial outlook," the company said in a statement Tuesday.
HP is particularly vulnerable because two-thirds of its revenue is from outside the U.S., Whitman said on a conference call.
It's a complex issue with a lot of moving parts. While the dollar is strong, the Japanese yen is currently weak, and that hurt HP's profitable printer business, Whitman said. That's because the weak yen allowed rivals in Japan to cut printer prices overseas and still pull in decent revenue when the sales were converted back to their own currency.
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