Corporate affiliates are under the magnifying glass as Hewlett-Packard Co. (HPQ) is evaluating its business connections with the aim to eliminate non-profitable partners for greater progression in 2013.
HPQ may “dispose of a business at a price or on terms that are less desirable than we had anticipated,” the company’s filing stated.
The world leading computer supplier is evaluating businesses that has not been contributing positively to the growth of the company over the last twelve months.
This evaluation is part of the process of rebuilding the company that kicked off in September 2011 after the California-based HPQ office experienced a decline in sales for a half decade.
The shedding of affiliations is aimed at attaining a higher marketing value on the Wall Street market.
Hewlett-Packard has experienced a 45 percent drop in share value during 2012. However, the last few strategic moves have managed to push it up to US $14.25, marking a 4.2 percent increase by 31 December 2012.
“When we decide to sell assets or a business, we may encounter difficulty in finding buyers or alternative exit strategies on acceptable terms in a timely manner, which could delay the achievement of our strategic objectives,” Hewlett- Packard said.
Meg Whitman, Chief Executive, revealed the spin-off of the personal computer division is not on the company’s agenda this year.
“Some people say HP doesn’t have much innovation left. I would say quite the opposite now having been the CEO for a year. Innovation is alive and well at HP, we need to do a better job of bringing that innovation to market faster…There’s a lot of innovation going on here,” Whitman told Marketplace in an interview late in 2012.
United States Justice Department investigations are also ongoing since November when the disappointing quarterly accounting results were amounted to fraud. HPQ has accused the accounting company Deloitte of end result figure misrepresentations for the financial year 2011.