HP CEO warns company's earnings will fall in 2013

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Associated Press

Posted on October 3, 2012 at 12:02 PM

Updated Wednesday, Oct 3 at 1:02 PM

SAN FRANCISCO (AP) — Hewlett-Packard CEO Meg Whitman expects the technology company's earnings to fall during the next year as she struggles to fix a wide range of problems in a weakening economy.

Whitman delivered her disappointing forecast Wednesday at a meeting that Hewlett-Packard Co. held for analysts and investors. The gathering gave Whitman the opportunity to persuade investors that she has come up with a compelling strategy for turning around HP one year after being named CEO.

She says she inherited a bloated company that hasn't been innovating quickly enough. The headaches are so severe that Whitman thinks it might be 2015 before HP's revenue growth starts to accelerate again.

Wall Street evidently didn't like what Whitman had to say. HP's stock price fell 6 percent in midday trading.

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