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Technology Stocks : Hewlett-Packard (HPQ) -- Ignore unavailable to you. Want to Upgrade?

To: PCSS who wrote (718)	6/4/2002 10:12:42 AM
From: Elwood P. Dowd	Respond to of 4345

Fiorina: HP Will Exceed Targets By BRIAN BERGSTEIN AP Business Writer Fiorina Says Hewlett Packard Will Exceed Some Financial Targets SAN JOSE, Calif. (AP) -- Hewlett-Packard Co. (NYSE:HPQ - News) is cutting costs ahead of schedule and will exceed some of the financial targets it set for its hard-fought acquisition of Compaq Computer Corp., chief executive Carly Fiorina said Tuesday. ADVERTISEMENT Kicking off a daylong meeting with financial analysts in Boston that was broadcast over the Internet, Fiorina said HP still plans to hack 15,000 jobs out of its 150,000-person work force, with 10,000 of the cuts coming before the end of the fiscal year on Nov. 1. The rest will occur in the next fiscal year. HP, which closed the $19 billion Compaq deal one month ago, had predicted the acquisition would generate $2 billion of cost savings by 2003 and $2.5 billion by 2004. Partly because the job cuts are coming faster than originally planned, Fiorina said the company now expects to save $2.5 billion in 2003 and $3 billion the following year. "We are moving faster and achieving more," she said. "We think moving faster on headcount reductions is good for employees, particularly when it reduces uncertainty." The job cuts largely are being carried out through voluntary retirement programs rather than layoffs, she said. The Compaq acquisition developed into one of the country's harshest proxy fights after Walter Hewlett, son of an HP co-founder and until April a member of the board, questioned the company's ability to meet its stated financial goals for the deal. However, Fiorina said HP's forecasts for the revenue that will be lost as a result of the deal remain accurate and conservative. "It's amazing how much you can get done when you don't have to count votes," quipped Hewlett-Packard's new president, former Compaq CEO Michael Capellas. "It's absolutely extraordinary." Chief financial officer Robert Wayman was expected to provide earnings forecasts later in the meeting. Coming into the day, analysts surveyed by Thomson Financial/First Call were predicting earnings of 20 cents per share in the current third fiscal quarter and 26 cents per share in the fourth quarter. HP is expecting revenue of $35 billion to $36 billion in the second half of the year, according to a slide for Wayman's presentation that was posted on the Web ahead of time. Analysts had been estimating $36 billion. In early trading on the New York Stock Exchange, HP shares were up 5 cents at $18.90. ------ On the Net:

To: PCSS who wrote (718)	6/4/2002 10:26:26 AM
From: Elwood P. Dowd	Respond to of 4345

Hewlett-Packard Sees Greater Cost Savings from Compaq Acquisition A Wall Street Journal Online News Roundup NEW YORK -- Hewlett-Packard Co . said it expects $500 million in merger- related savings this year, above its previous estimate, as it cuts jobs and integates recently acquired Compaq Computer (CPQ - News) Corp. H-P said in a meeting with analysts Tuesday that it will cut 10,000 jobs in the second half of this fiscal year then another 5,000 next year, half from the H-P operations and half from Compaq, reaching the previously announced total of 15,000. It expects to incur restructuring charges of $2.1 billion. H-P also said it sees fiscal second-half revenue of $35 billion to $36 bilion and gross margins of 25% to 26%. Revenue should rise 4% to 6% in fiscal 2003 and 7% to 9% in 2004. For fiscal 2001, which ended Oct. 31 , a still separate H-P produced revenue of $43.23 billion, while Compaq had revenue of $33.55 billion in calendar 2001. Along with the $500 million this year, H-P now expects savings of $2.5 billion in fiscal 2003 and $3 billion in fiscal 2004 from its acquisition of Compaq. It previously said it expected $390 million in savings this year, $2 billion in 2003 and $2.4 billion in 2004. H-P's plan to acquire Compaq, Houston , closed in May after a Delaware judge dismissed a lawsuit from dissident shareholder Walter Hewlett. Mr. Hewlett, the son of an H-P co -founder, had aimed to block the deal during an extensive, months-long proxy battle and filed suit after H-P declared victory for the deal following its March 19 shareholder vote. However, after the judge issued his decision, Mr. Hewlett vowed to give up the fight and support the merger. H-P's employee base remains divided and nervous, and is bracing for the 15,000 layoffs out of a combined 150,000 work force needed to help H-P, of Palo Alto , Calif. , and Compaq achieve a promised $2.5 billion in annual operating expenses.

To: PCSS who wrote (718)	6/4/2002 10:27:07 AM
From: Elwood P. Dowd	Read Replies (2) \| Respond to of 4345

Hewlett-Packard/Outlook -4: Street Sees '02 Revenue $76.35 Billion H-P said it expects that the $18.6 billion deal, which it sealed in early May after a tiresome eight months of proxy fights and legal disputes, will lead to revenue growth of 4% to 6% in fiscal 2003 and increases of 7% to 9% in fiscal 2004. Wall Street expects the company to turn in revenue of $74.75 billion for fiscal 2002 and $76.35 billion for fiscal 2003, according to Thomson Financial/ First Call, which tracks analyts' estimates. For fiscal 2001, which ended Oct. 31 , a still separate H-P produced revenue of $43.23 billion, while Compaq had revenue of $33.55 billion in calendar 2001.