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HP CEO Dion Weisler Stepping Down — 2nd Update

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)

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