More cost cuts expected at HP

Technology giant Hewlett-Packard Co. still has more cost-cutting ahead, even after a massive restructuring that has sliced the workforce by 10%, Chief Executive Mark V. Hurd told analysts Tuesday.

At a meeting in New York, Hurd said HP would continue to look for expense reductions while it retooled its sales strategies and made other moves aimed at improving the company’s position.

“We have a lot more cost to take out,” Hurd said. “We are a company that is transforming -- we are not a company that is transformed.”

Hurd is credited with sparking a dramatic turnaround in less than two years at the helm, leading to a doubling of HP’s stock price. Since July 2005, HP has cut 15,300 jobs and overhauled its retirement plan in an effort to save $1.9 billion a year.

HP Chief Financial Officer Robert Wayman, who announced his retirement plans Monday, reiterated the company’s earnings and revenue guidance for fiscal 2007, which ends Oct. 31.

He also released the company’s first public forecast for 2008, saying revenue is expected to grow 4% to 6% to between $101 billion and $103 billion. Earnings per share should be between $2.78 and $2.98, in line with analysts’ forecasts.

HP also said that it agreed to acquire Knightsbridge Solutions Holdings Corp. to bolster its services business.

HP shares fell 18 cents to $39.83.