HP Reveals Turnaround Strategy for All Business Units at Investor Meeting

HP to Concentrate on Cloud, Data Security and IT Services

by Anton Shilov
10/03/2012 | 05:31 PM

At HP’s annual securities analyst meeting in San Francisco, the company’s mangeme out strategic priorities for the future and provided a detailed multiyear roadmap to turn the company around.

 

During her keynote, HP’s president and chief executive officer Meg Whitman outlined progress made over the past year to stabilize the business and lay the foundation for a multiyear turnaround. The company is positioned to extend its leadership into the major trends driving IT investment - cloud computing, information optimization and data security.

In May, HP initiated a multiyear restructuring designed to realign its cost structure and create investment capacity to drive innovation against its strategic priorities, strengthen market leadership and rebuild its balance sheet while returning capital to shareholders. Despite the challenging environment, the company has maintained research and development (R&D) spending, along with a steady focus on preserving the long-term health of the business. The company is on track to deliver on its savings targets and complete the restructuring by the end of fiscal 2014.

By 2016, Ms. Whitman expects the company’s revenues to be growing in line with gross domestic product (GDP), with operating profit growing faster than revenues, industry-leading margins and disciplined capital allocation.

“HP has a powerful set of assets, a culture of engineering innovation and a trusted brand. Now, we have to focus on bringing our incredible assets together to deliver for our customers, employees and shareholders,” said Ms. Whitman.

Throughout the day, HP’s management team will discuss ongoing challenges and lay out specific plans and goals for the company’s turnaround, including: