HP expects better earnings

Diversified portfolio, increased demand for IT the key

KUALA LUMPUR: With the ongoing Covid19 pandemic, HP Inc is looking to improve its earnings this year due to its diversified portfolio of businesses, as well as an increased demand for information technology (IT) products for business continuity.

For financial year 2019 (FY19), HP Inc and its subsidiaries’ revenue was up 0.5% to Us$58.8bil from Us$58.5bil a year ago.

HP Inc managing director for Greater Asia Ng Tian Chong said the company’s diversified portfolio of businesses have helped HP sustain its earnings, as well as ride out the tough times.

“Our businesses are diverse, we are selling our products to consumers, enterprises, governments as well as small and medium enterprises (SMES).

“There are certain sectors that have been harder hit during the Covid-19 outbreak, but we are able to pivot our resources to cater to that.

“During the outbreak, our customers were also buying more IT products such as printers and computers to work efficiently and productively from home,” he added during the media briefing of the ‘HP 2019 Sustainable Impact Report’ virtual launch.

Among other panelists that were present during the briefing were Asia Europe Foundation acting director Gina Pulawska, JA Asia Pacific senior regional business development manager in Asia Pacific Monique Wong and Systemiq partner Joi Danielson.

On the flip side, experts believe that the pandemic has driven many businesses to be concerned about health issues compared to other issues such as ending poverty or building waste management systems.

Danielson noted that the Covid-19 pandemic was having an “extreme” impact on waste management companies due to the reduction in government funding, adding that waste management had become a lower priority than healthcare during the pandemic.

“We are looking at almost a 50% decline in revenue for waste systems. No waste system can survive with that type of income loss,” she added.

As such, Danielson pointed out that the company’s recycling line of business had fallen and job additions were delayed, adding that the company was dipping into its maintenance funds to survive in these challenging times.

For companies to generate higher earnings in the long run, Pulawska advised firms to have a whole safety network for their employees, including insurance, education and social responsibility for the environment.

“It is a win-win situation for businesses to look at its growth and development with a social responsibility of focusing on the environment, as they are likely to generate higher profits in the long run,” she added.

“Our businesses are diverse, we are selling our products to consumers, enterprises, governments as well as SMES.” Ng Tian Chong