HP CEO Enrique Lores said the company was preparing for a range of scenarios and had suspended product shipments to Russia as part of the US response to Russia’s invasion of Ukraine. HP Inc. just announced Q1 revenue of $17.0 billion, up 8.8% from the prior-year period, despite a fall in printing revenue.
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| (Image: Act For Peace Ukraine Appeal) |
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| "A small part of our business": HP CEO Enrique Lores |
During a conference call with investors, HP CEO Enrique Lores said the company was preparing for “a range of scenarios” prompted by the conflict, according to a report by tech site CRN.
“We have already stopped shipments of every product that is prohibited by the sanctions,” Lores said in an interview. “It’s a small part of our business.
“The well-being of our people, their families and our customers and partners is our top concern.”
“We are doing everything we can to keep them safe. The difficult situation in Ukraine is the latest in a series of global challenges we have faced.
"Time and again, our team has shown remarkable agility and determination and I have great confidence in their ability to manage these situations.”
HP Inc. announced fiscal 2022 first quarter net revenue of $17.0 billion, up 8.8% from the prior-year period, despite Printing net revenue falling by 4% year over year to $4.8 billion. Total hardware units were down 28%.
“Our Q1 performance was particularly strong across our key growth areas that collectively grew double digits including gaming, peripherals, workforce solutions, consumer subscriptions, and industrial graphics and 3D,” Lores said.
Personal Systems net revenue was $12.2 billion, up 15% year over year (up 14% in constant currency) with a 7.8% operating margin. Consumer net revenue decreased 1% and Commercial net revenue increased 26%. Total units were down 6% with Notebooks units down 9% and Desktops units up 3%.
Printing net revenue was $4.8 billion, down 4% year over year (down 5% in constant currency) with a 18.2% operating margin. Consumer net revenue was down 23% and Commercial net revenue was up 9%. Supplies net revenue was down 2% (down 3% in constant currency). Total hardware units were down 28% overall, with Consumer units down 31% and Commercial units down 3%.
HP’s dividend payment of $0.25 per share in the first quarter resulted in 'cash usage' of $0.3 billion.
