Cost-Cutting Boosts HP Profits

Hewlett-Packard reported net income rose 14 percent in its most recent quarter, though sales were down 8.4 percent to $30.8 billion.

The Wall Street Journal notes the company was touting its “relentless focus on driving efficiencies across the business” and indeed, BloggingStocks' Steven Mallas pointed to improvement in the company's operating margin.

The Journal, though, draws attention to the fact that the company wasn't touting increased demand for its products, which it says might cast Dell's recent poor showing in a better light, meaning Dell's problems might not be merely internal.

Shipments in HP’s PC division were up 8 percent, although revenue dropped 12 percent, according to an Associated Press report in the Fort Worth Star-Telegram. That piece only hints at the issue that netbooks are faring well in this economy, but aren't that profitable for PC makers.