Hewlett Packard Inc to close printing plant in Kildare, Ireland.
Up to 500 jobs are at risk in Kildare, Ireland as Hewlett Packard Inc are to close their print business manufacturing plant. This is part of a global strategy announced last year to cut up to 4,000 jobs globally.
Hewlett Packard split into two separate companies in 2015, Hewlett Packard Inc and Hewlett Packard Enterprise. HP Inc. provides printers, printing supplies, personal computers, workstations, mobile devices, and related products, services, and software to consumers and businesses. Printing accounts for 38% of revenues, 72% of operating profits; Personal systems, 62% of revenue, 28% of operating profits. Revenue by geography: the Americas region, 46% of total (the United States, 37%); Europe, Middle East, Africa, 34%; Asia/Pacific, Japan, 20%.
HP Inc. made a little revenue progress in fiscal 2016. Personal systems revenues rose 4%, with growth in the consumer (up 7%) and commercial (3%) segments. And for the first time in several quarters, printer hardware units increased by 1%.
Printing margins contracted, from about 17% a year earlier to 14%, hurt by lower supplies revenues. The outlook for the new fiscal year remains challenging. The personal computer market will likely continue to shrink. The company also looks for a mid-single-digit decline in printing supplies revenues in the opening period of the year.
HP expects printing supplies revenues to stabilize by the end of fiscal 2017. Ongoing productivity and cost cutting initiatives should help lower costs. The view to late decade is hazy. New product spending seems to be paying off for HP Inc., but the ultimate shape of the personal computer market is unclear. On the printing side, it may take a few years for demand for 3D printers to take off and for HP to take advantage of opportunities provided by the pending acquisition of Samsung’s office copier business.
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