HP to possibly unload non-performing divisions
After a whirlwind of chaos surround the company's executive suite Hewlett-Packard (HP) brought eBay ex-CEO Meg Whitman to try and turn the company around. While Wall Street is still waiting there is some serious talk of the company looking to unload assets and businesses that aren't performing up to expectations.
There's no getting around the fact that Hewlett-Packard has been experiencing more than its fair share of hard time, whether brought on by its own executives or just the market in general, but things aren't necessarily looking any better.
In a December 27 10-K filing with the U.S. Securities and Exchange Commission the company reported that they are in the process of evaluating possible disposition of company assets and businesses that are not helping the company as a whole meet objectives.
It was in September 2011 that the company hired eBay ex-CEO Meg Whitman to try and turn the sinking ship around. A ship that was badly wounded by five straight quarters of declining sales as well as some huge botched deals and complete confusion in the executive suite. The demand from Wall Street for the company to start shedding certain business came after the $8.8 billion write down regarding the acquisition of the software company Autonomy Corp.
HP also stated in the filing to the SEC that the U.S. Justice Department has opened an investigation regarding the Autonomy mess and HP has accused Autonomy of misrepresenting its performance before being bought in 2011.
The filing continued with stating that there is the possibility that some of the businesses they might be disposing of might be at a price or on terms that might be less desirable than anticipated. Moreover, the impact of any divestiture on the company's revenue growth might be larger than anticipated.
Any way you slice it things aren't looking up for HP any time soon it would seem.
via Business Insider