HP Sees Charges Up to $1.4 Billion After Compaq Merger

Hewlett-Packard said the forecast includes estimates for restructuring of $450 million to $700 million, and for purchase accounting and goodwill costs also of $450 million to $700 million. It estimated the cash impact of the charges at $800 million to $1.2 billion.

Hewlett-Packard estimated that earnings for fiscal 2003 for the combined companies would be $1.51 a share, 12 percent above the Wall Street consensus estimate for Hewlett-Packard's stand-alone earnings of $1.35 a share.

The $1.51 estimate is based on analysts' consensus earnings forecast for Compaq's calendar 2003 of 49 cents per share, adjusted to Hewlett-Packard's October fiscal year-end. It excludes the impact of restructuring charges and non-cash charges associated with acquisitions.

Copyright 2000 Reuters Limited. All rights reserved.

id
unit-1659132512259
type
Sponsored post

Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters.

Reuters shall be not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.