Menu
HP NZ drops in profit

HP NZ drops in profit

HEWLETT-Packard’s New Zealand subsidiary has doubled its revenue but reduced its profit by more than two-thirds in its latest financial year, which ended October 31, 2003.

But the company says despite a drop in net surplus it met its revenue targets and the cost of its failed bid for a Fonterra outsourcing contract had little impact on financial performance.

Financial statements made available by the Companies Office last week show HP turned over $539 million for the period, compared to $276 million the previous year. After tax profit was $2.6 million – or 0.5% of revenue – versus $9.6 million and 3.5% in 2002.

The latest result is the first since the merger of HP’s and Compaq’s operations, which took effect from December 1, 2002. This means Compaq’s contribution for November 2002 is excluded from the accounts.

Compaq’s last full-year result before the takeover was the year to December 31, 2001, which produced turnover of $323.1 million and an after tax profit of $2.8 million.

HP acting chief executive Simon Tong was unavailable for comment but spokesperson Ken Erskine says currency hedging — and not its Fonterra bid — is the main reason profit fell.

“The impact to the 2003 results for New Zealand was $18.3 million,” he says in a written statement. “[Fonterra had] no discernible impact.”

In September, Fonterra awarded a near-$600 million dollar outsourcing contract to EDS, and sources said at the time that they estimated a bid for such a contract would have cost at least $10 million.

Erskine would not give details of the year’s products and services sales. “We are unable to comment on local business splits [but] I can advise that all areas of our business, hardware, services and software, met or exceeded their HP targets for [the 2003 year].”


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments