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Sunday, October 30, 2011

Hewlett Packard: What's going on with HP Now? (10-30-11)

From the Article:

(Saab, Hewlett Packard: Deals to Watch

Skipping on down to the HP info...

After two months of uncertainty, HP's(HPQ _) new CEO Meg Whitman has made her second decisive stamp on the world's largest computer maker in a month, by announcing the company will retain its division. HP announced on Thursday, after spending the last few months considering a spinoff of its computer business - that it was too important to overall revenue and the company's supply chain to be cut.

"HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It's clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees," explained HP CEO Meg Whitman, in a statement released after market close on Thursday.

HP rose nearly 5% to $28.34 a share in early trading. The stock, which is down over 30% year to date and is one of the Dow Jones Industrial average's worst performer, has recovered over a quarter of its value since Whitman's CEO nomination.

Read more...
http://www.thestreet.com/story/11292527/1/saab-hewlett-packard-deals-to-watch.html

Related Videos on HP...

Visit msnbc.com for breaking news, world news, and news about the economy

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The Original Report I found on Friday, August 19, 2011

HP to 'Reinvent' Company With Return to Roots

By Dina Bass - Aug 19, 2011 3:19 PM CT

By spinning off Hewlett-Packard Co. (HPQ)'s personal-computer business, Chief Executive Officer Leo Apotheker is shedding a unit the founders never liked anyway.

David Packard only reluctantly agreed to focus on PCs in the early 1990s. And Walter Hewlett, a board member and son of co-founder Bill Hewlett, mounted an unsuccessful campaign to block the 2002 acquisition of Compaq Computer Corp., a deal that vaulted Hewlett-Packard to the top of the PC industry.

From Hewlett-Packard's beginnings in 1939, the company's founders set out to invent one-of-a-kind products and tools for engineers. They never intended to become the biggest provider of a commodity product, said Michael Cusumano, a professor at the Massachusetts Institute of Technology's Sloan School of Management. Now that PC profits are waning amid competition from Asian rivals, Apotheker is poised to return to that philosophy.

"Their DNA never included being a commodity consumer products manufacturer, which is what the PC has become," Cusumano said. "It's certainly not where the action and innovation is in the business these days. They can reinvent themselves. They may have the capability to do it."

While the PC unit accounted for 30 percent of sales last quarter, it only generated a 5.9 percent operating margin. That's less than at any other division in the company.

Hewlett-Packard, based in Palo Alto, California, dropped $5.91, or 20 percent, to $23.60 at 4 p.m. on the New York Stock Exchange, the biggest decline since October 1987.