HP CEO Dion Weisler Stepping Down -- 2nd Update
August 22 2019 - 5:30PM
Dow Jones News
By Patrick Thomas
HP Inc. Chief Executive Dion Weisler is stepping down as the
leader of one of the world's largest PC makers later this year for
family health reasons.
Mr. Weisler, who took over as HP CEO in 2015, will be succeeded
by Enrique Lores, the head of the company's imaging, printing and
solutions business, HP said on Thursday. Mr. Lores, a Spaniard who
joined the company as an intern 30 years ago, will assume the top
job on Nov. 1 and work with Mr. Weisler through January 2020 to aid
the transition, the company said.
"The fundamental strength of the company has never been greater.
Enrique is absolutely the right choice at the right time," Mr.
Weisler, who will remain on HP's board, said in an interview.
Shares of the Palo Alto, Calif.-based company fell more than 5%
after hours.
Mr. Weisler has led HP, which sells computers and printers,
since Hewlett-Packard Co. in 2015 split the company that Bill
Hewlett and Dave Packard started in their Palo Alto, Calif., garage
in 1939. The other business, Hewlett Packard Enterprise Co.,
focuses on selling computer servers, data-storage gear and other
services for corporate-technology departments.
Mr. Weisler said he would eventually leave Silicon Valley to be
with his family in Australia.
In its latest quarter, HP reported flat revenue after selling
more desktop computers, but gains were offset by weaker performance
in its printing business. HP was the world's No. 2
personal-computer maker by shipments in the second quarter,
according to data from Gartner Inc.
Revenue from HP's personal-systems unit, which includes its PC
business and sales of tablets, systems for retailers and other
devices, rose 3% in its fiscal third quarter.
Sales of printers, printing supplies and related items dropped
5%. HP's printing business has been a focus for investors. It
offers larger profit margins than those from HP's other business
segments, but has struggled recently. Mr. Weisler attributed the
quarter's slump to macroeconomic uncertainty and lower sales in its
Europe, Middle East and Africa region.
Overall, HP reported sales of $14.60 billion, compared with
$14.59 billion a year earlier. Analysts surveyed by FactSet had
expected $14.62 billion of revenue in the quarter.
For the quarter ended July 31, HP's profit was $1.18 billion, or
78 cents a share, compared with $880 million, or 54 cents a share,
a year ago. Analysts surveyed by FactSet were expecting earnings of
53 cents a share.
Excluding acquisition and restructuring charges and after other
adjustments, HP reported a profit of 58 cents a share, above the 55
cents a share analysts were expecting on an adjusted basis.
The company raised its fiscal-year adjusted earnings outlook to
between $2.18 and $2.22 a share, compared with an earlier forecast
of $2.14 to $2.21.
Write to Patrick Thomas at Patrick.Thomas@wsj.com
(END) Dow Jones Newswires
August 22, 2019 17:15 ET (21:15 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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