Business: Hewlett-Packard warns of lower earnings

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By BRIAN BERGSTEIN, Associated Press

SAN JOSE, Calif. (January 11, 2001 5:30 p.m. EST http://www.nandotimes.com) - Hewlett-Packard Co. became the latest high-tech company to issue an earnings warning, saying Thursday that first-quarter results will fall short of expectations.

The Palo Alto-based computer, printer and server giant blamed the worsening economy and a slowdown in technology spending.

The company said it expects to earn between 35 and 40 cents per share this quarter. Analysts surveyed by First Call/Thomson Financial were expecting 42 cents per share, up from 40 cents in the same quarter last year.

Carly Fiorina, HP's chairwoman, president and chief executive, said consumer spending has been even lower than the company had expected, "and our enterprise customers - responding to the growing economic uncertainty - have become increasingly cautious about (information technology) spending."

"It's clear there's been a significant change in market conditions in recent weeks," Fiorina said in a statement. "Within this environment, we're staying focused on operational excellence and on achieving our earnings targets by aggressively pursuing profitable growth opportunities and effectively managing expenses."

HP shares rose 63 cents to $32.38 on the New York Stock Exchange before the earnings warning was announced.

-- kevin (ktross@mailcity.com), January 11, 2001