Hewlett-Packard
Profit jumped 14 percent in the latest quarter, proof that cost-cutting and a push into rival IBM’s stronghold of technology services is helping the company absorb a fall-off in sales in most of its major divisions.
As a yardstick for the health of overall technology spending, HP’s latest numbers reinforce trends other companies have reported: Consumers and China are showing stronger demand, while businesses remain hesitant.
HP reported Monday after the market closed that it earned $2.4 billion, or 99 cents per share, in the three months ended Oct. 31. That compares with $2.1 billion, or 84 cents per share, in the year-ago period.
Excluding one-time items, net income was $1.14 per share. Sales fell 8 percent to $30.8 billion, or dropped 5 percent if currency fluctuations are stripped out. By both measures, the results exceeded the expectations of analysts polled by Thomson Reuters.
Tyson Foods
The meat producer said it made strides this year and predicts more improvements next year, but analysts worry that the company’s all-important chicken business is lagging others in the industry.
Tyson said a hefty impairment charge in its beef business left it with a loss for the fourth quarter. But all of its business units, including chicken and pork, were profitable, when excluding the $560 million noncash charge.
Tyson lost $455 million, or $1.22 per share, in the three months ended Oct. 3. That compares with a profit of $48 million, or 13 cents per share, a year ago. Sales rose slightly to $7.21 billion, with chicken sales up 11 percent to $2.64 billion.
Campbell Soup
First-quarter profit rose 17 percent with the help of lower costs from increased efficiency in getting its products from its plants to store shelves, as well as lower prices for grain ingredients.
But revenue fell 2.1 percent to $2.2 billion with dips in sales for most of its categories, ranging from condensed soup to Prego pasta sauce.
Earnings were $304 million, or 87 cents per share, in the first quarter, up from $260 million, or 70 cents per share, a year ago.
