Shares in the world's largest computer maker Hewlett Packard traded sharply lower Wednesday after CEO Meg Whitman warned of a lag in the company's restructuring effort and forecast 2013 earnings that were sharply lower than expected.
Whitman's progress report on the restructuring effort she announced in May focused on the company's plans to realign its business to the major trends driving tech investment, namely cloud computing, information optimization and data security.
But she said that she expected it would take until 2016 before the company's revenue would grow in line with GDP, and for operating profit to grow faster than revenue.
Whitman, who is the company's sixth chief executive since 2005, blamed high executive turnover for the failure of the company to revive its strategy, telling investment analysts that the biggest challenge facing Hewlett-Packard has been changes in top management and executive leadership, which has caused "multiple inconsistent strategic choices" and some significant miscues in execution.
"As a result it is going to take longer to right this ship than any of us would like," she told the company's annual conference for investors.
HP said that for fiscal year 2013 earnings would be between $3.40 and $3.60 per share, missing the $4.16 per share that analysts had expected.
Shares in the company were down almost 10 per cent in afternoon trading to $15.43 as analysts said the forecast was much worse than expected.
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