Hewlett-Packard Co. (AA-/Negative/A-1+) reported revenues of $10.1 billion and net income of $111 million for its fiscal third quarter, ended July 31, 2001. Revenues declined 14% from the year-earlier period, affected by deteriorating global economic conditions and related weakness in technology spending. Standard&Poor's does not expect HP's third-quarter results to have any impact on ratings. However, the current rating incorporates the expectation that HP will maintain its strong financial profile and that profitability levels will improve, beginning in the quarter ending Oct. 30, 2001, with substantial continuing improvement in fiscal 2002.
