Revenue from inks also reduced by 14% during the quarter. This was one of the factors contributing to the unfavorable result in the printing and imaging division. Operating income in that division decreased to $808 million, compared with $1.22bn in Q4 2010. Despite a 2% increase in shipments of PC units, the company's core business, sales in that sector were down 1.6%.
According to Cathie Lesjak, HP's CFO:
"Margins were unfavorably impacted by the strong Yen and lower-than-normal supplies... as we continue to work down high supply channel inventory." CEO Meg Whitman also spoke of the need for the company to recover from a wave of acquisitions undertaken by previous CEO Leo Apotheker. This resulted in doubling the company's debt over a year to $22.6 billion. In contrast, Ms Whitman pledged caution about new purchases in 2012, saying that the company would be "getting back to business fundamentals".
These will include a renewed focus on research and development.
She said the company would be focusing on rebuilding the balance sheet and added:
"We aren't building for next month or next quarter. We are building this company to be great over the next decade."
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