Compaq downgrades Q2 income forecast from US$9b to US$8.4b

Global second biggest PU manufacturer Compaq issued earnings warnings yesterday and declared that the Q2 income was expected to drop 8% from the Q1 to US$8.4 bln and the per share earnings would stand at 4 US cents as a result of the stubbornly worsening European economy. The company predicted that it would reap US$9 bln income in the Q2 while per share earnings was 5 US cents in April. The company further said that it would increase the number of laid-off employees from 7000 to 8500 to carry out the cost-reduction plan. Dell has replaced Compaq to become global top PC maker early this year due to the keen price war in the industry.

Related stock : (NIL)