HP’s 2nd-Quarter Earnings Drop 13%

Hewlett-Packard Co. said its fiscal second-quarter earnings fell 13% to $685 million, or 65 cents a diluted share, from $784 million, or 75 cents, a year ago, as sales rose 16% to $12.04 billion. The nation’s No. 2 computer company had warned Wednesday that price-slashing in the personal-computer industry would hurt results. Analysts had expected earnings of 78 cents before the warning. HP also raised its dividend to 16 cents from 14 cents a share. Before Wednesday, HP shares had soared to record levels, lifted by its assurances in March that the company wasn’t facing the PC inventory problems that erased almost all profit at rival Compaq Computer Corp. Hewlett shares fell 88 cents to close at $69.44 on the New York Stock Exchange, after tumbling 14% Thursday.