Hp hits russia with u s backed shipment ban News
HP Hits Russia With U.S.-Backed Shipment Ban
The PC and printer giant joins in historic sanctions against Russia; print business may take further hit with conflict’s supply chain impact
HP Inc. has suspended product shipments to Russia as part of U.S. sanctions in response to President Vladimir Putin’s invasion of Ukraine.
During a Q1 2022 earnings conference call with investors, HP CEO Enrique Lores (pictured) said the company was preparing for “a range of scenarios” prompted by the conflict. “The well-being of our people, their families and our customers and partners is our top concern,” he said. “We are doing everything we can to keep them safe.”
The Russia-Ukraine conflict is the latest in a series of global supply chain worries that may impact the company going forward. While HP showed record revenue of $17 billion in its most recent quarter, the company’s print business was hit hard by supply chain-related component shortages and logistics hiccups. And analysts say the supply chain will face more uncertainty, considering Russia and Ukraine provide palladium and neon gas that is heavily used in chip manufacturing.
Lores said the company will not be impacted by supply chain transport issues involving Russia and Ukraine, as the company ended shipping routes through the affected region last year. But Reuters reported earlier this week that tech components may be greatly affected by the conflict, with Russia’s palladium supply and Ukraine’s neon gas production in question.
HP’s print business was hobbled this quarter by chip shortages – with Lores pointing to supply chain woes for the company’s loss of 4 percent of print revenue in the quarter. Going forward, Lores told analysts, “with regard to print supply chain, we expect similar to to what we saw in Q1: component shortages and logistics delays to constrain revenue.”
Companies around the globe have unleashed economic sanctions against Russia in the wake of the unprovoked attack on Ukraine. And analysts expect a massive ripple effect on markets and businesses. Already, Russian banks have been banned from the SWIFT international bank communications system. HP is just the latest in a long line of multi-national companies withholding business from Russia.
As for HP, Lores said the company will keep a close eye on developments. “The difficult situation in Ukraine is the latest in a series of global challenges we have faced,” he said during the earnings call. “Time and again, our team has shown remarkable agility and determination and I have great confidence in their ability to manage these situations.”
HP stock was ticking upward Tuesday morning, to 34.62 per share.