HP profit falls as declines, charges hit results

By JORDAN ROBERTSON | November 21, 2011 | 5:10 PM EST

SAN FRANCISCO (AP) — Hewlett-Packard says its net income plunged in the latest quarter as revenue declined in three of its main business lines.

HP's personal computer unit, its printer and ink division, and its servers and networking segment each experienced declines. HP also absorbed heavy costs for shuttering its tablet and smartphone businesses.

The results illustrate the challenge HP faces as it charts a new course under new leadership.

HP earned $239 million, or 12 cents per share, versus $2.53 billion, or $1.10 cents per share, in the year-ago period. Excluding items, HP earned $1.17 per share. Analysts polled by FactSet expected $1.13.

Revenue rose 3 percent to $32.12 billion. Analysts expected $32.05 billion.

HP shares rose 48 cents, or 1.8 percent, to $27.95 in extended trading, after the results were reported.