Despite plans to split, HP earnings show it's still grappling with sluggish PC business

Markets Associated Press

Venerable tech giant Hewlett-Packard has been struggling for three years to turn its business around. Its latest earnings show it still has more work ahead.

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While CEO Meg Whitman has decided to split the company in two, she has said it will take a year to disengage the sluggish printer-and-PC division from faster-growing units that sell commercial tech hardware, software and services. Meanwhile, HP reported Tuesday that its sales fell 2 percent in the most recent three-month period, marking its 12th revenue decline in the last 13 quarters.

And there was little comfort in a new forecast issued Tuesday by market research firm IDC. It predicts the global PC market will shrink 2.7 percent this year, instead of the 3.7 percent drop forecast earlier.