HP shares slide after Whitman talks of recovery in 2014

HP saw its biggest share slide for nine years in reaction to comments made by the CEO Meg Whitman at an analyst meeting which painted a bleak picture of 2013

Hewlett-Packard's shares slid to a nine-year low after the CEO outlined a downbeat vision of the next financial year.

Speaking to investors Meg Whitman, who took over a year ago at the helm of the firm, warned that the vendor's recovery plan would only start showing signs of working in 2014 and next year is going to be tough.

The share price dropped by 13% after she revealed the state of the business with some analysts expressing disappointment that she has not been able to improve the fortunes of the firm quicker.

Whitman said the changes required to get the firm back on track had been made in the year since she took charge and before too long those investments, in both technology and people, would start to deliver benefits and by 2016 it would be growing in line with gross domestic product numbers in the US.

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

Across the business various efforts are being made to control costs and streamline the organisation and Todd Bradley, executive vice president of printing and personal systems (PPS) at HP, is going to mastermind a reduction in the SKUs in the printing business by 30% and the number of platforms in the PC business by 25% by the end of 2014.

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