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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: Copeland who wrote (9412)	3/2/1999 7:30:00 AM
From: LastShadow	Read Replies (1) \| Respond to of 43080

Tue, 02 Mar 1999, 7:26am EST Hewlett-Packard Will Reorganize, Split in Two, Wall Street Journal Says Palo Alto, California, March 2 (Bloomberg) -- Hewlett- Packard Co., the world's No. 2 computer maker, will today reveal plans to break up the company into at least two separately traded entities, the Wall Street Journal Interactive Edition reported. No one from the company was immediately available to comment on the report, which cited unidentified ''people familiar with the matter.'' The company plans an announcement after the close of trading, the WSJ citing the people as saying. H-P has been struggling to boost profit as prices for its printers and personal computers fall and recession in Asia and parts of Latin America hurts sales. Though first-quarter profit beat expectations, H-P expects lackluster sales growth for the rest of its fiscal year because of a slowdown in some businesses in North America and Europe. H-P's shares traded in Europe rose 2 to 67 7/8, according to Madoff Securities International Ltd. Net income in the three months ended Jan. 31 climbed 3.3 percent to $960 million, or 92 cents a share, from $929 million, or 86 cents, in the year-earlier period, H-P said last month. However, company also said it expects fiscal 1999 sales growth to be at the low end of its earlier forecast for an 8 percent to 10 percent rise. The Palo Alto, California-based company has slashed expenses, cut its workforce and put a freeze on hiring to cope with slowing growth. H-P has hired consulting firm McKinsey & Co. to examine possibilities for the company, the WSJ reported. According to the WSJ report, H-P could separate its test and measurement units from its computer business, although one unidentified person close to the company said it is likely to focus on products for premium-priced markets such as the Internet. The company recently has begun developing devices consumers can use to harvest information from the World Wide Web.