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HP Businesses

HP Turns Back On $1 Billion In Annual Sales By Quitting Russia, Belarus (theregister.com) 110

"Considering the COVID environment and long-term outlook for Russia, we have decided to stop our Russia activity and have begun the process of fully winding down our operations," said CEO Enrique Lores on a Q2 earnings call with analysts. Lores says "business there accounted for approximately $1 billion in revenue in fiscal year 2021." The Register reports: HP was among the first wave of tech companies to suspend shipments to the countries soon after Russia invaded its neighbor on February 24, but now the company's president and CEO Enrique Lores is making the move more permanent. [...] HP's Lores revealed the exit of Russia and Belarus as HP reported financial results for Q2 of its fiscal 2022 ended 30 April: revenue grew 4 percent to $16.5 billion including a 9 percent hike in the Personal Systems Group to $11.532 billion, and a 7 percent drop in Printing to $4.963 billion.

In the PC unit, notebooks were up 3 percent to $7.734 billion, and desktops were up 28 percent to $2.855 billion as corporate customers refreshed their estates. [...] HP recorded a net profit of $1 billion for the period, lower than the $1.228 billion reported in the same quarter of last year.

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HP Turns Back On $1 Billion In Annual Sales By Quitting Russia, Belarus

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  • womp womp (Score:2, Interesting)

    by Arethan ( 223197 )

    https://www.youtube.com/watch?... [youtube.com]

    However, I'm actually a bit surprised that capitalism has been bowing out to world politics like this. It's uncharacteristic, to say the least. There must be money to be made that we're not universally exposing. I'd guess from the oil barrel price hikes, but I haven't done that level of bird-dogging yet.

    • Re:womp womp (Score:5, Informative)

      by Klaxton ( 609696 ) on Wednesday June 01, 2022 @08:02PM (#62585110)

      Russia's behavior is a threat to to everyone in the Western nations and maybe the world. Assisting that in any way is contrary to survival if nothing else. Plus there's a distinct likelihood that Western assets in those countries will be seized outright under the current circumstances. Wind it all down ASAP and mark it off to experience.

      • Pretty much this, the idea is probably "let's get out with all our assets while we still can [theguardian.com]".

      • by spads ( 1095039 )
        Certainly, Putin is "something" of a baddy-waddy, but it's not so cut and dried over there as a lot would like to think. See Oliver Stone's (produced) "Ukraine on Fire" documentary, to get a sense of Ukraine's tortured (recent) past. The US was really instrumental in a political coup which resulted in some extreme right, true (Neo/olden-) Nazis taking power, supplanting what had been a more duly elected (admittedly, Russian backed) administration. That country has had a seriously challenged/troubled past
    • Re:womp womp (Score:4, Insightful)

      by hey! ( 33014 ) on Wednesday June 01, 2022 @08:34PM (#62585148) Homepage Journal

      They probably are finding it unprofitable, which is a good time to take a stand. Russia is taking all kinds of draconian measures to prop up the ruble, so it's not a good place to do business right now if you want to get your money out of the country.

      • by Arethan ( 223197 )

        Imo, this seems sane, and tracks with recent history. If the ruble isn't readily tradable to other currencies, then it is effectively worthless outside of Russian markets. In the current world of global trade, that just makes it a useless currency -- might as well be monopoly money off the 2nd floor office printer.

    • There's currently a cost associated with doing business with Russia. This very much calls in line with Capitalism. Also, the lost $1B in annual revenue, while not peanuts, is a small fraction of their total annual revenue (the summary stated Q2 was $16B). The title is clickbait at best.

      And, since you're so eager to attack Capitalism from a point if ignorance, the price of oil is very much supply and demand. If the price did not go up, there would be mass shortages. People would be waiting in lines circ

      • People would be waiting in lines circa the 1970's and rather than complaining about how much they need to spend,

        How it works in the real world is people alter their behavior when they cannot purchase the things they want or need. They make compromises that is more than just mere complaints. Long term changes in spending habits will trigger a major economic shift, and sadly most people are too ignorant to understand how easily we can slip into a completely avoidable recession or depression.

        There are consequences to rabid environmental zealotry.

        A centrist doing the bare minimum gestures to appease international bodies without taking an active world leadership role in envir

      • by jbengt ( 874751 )

        If the price did not go up, there would be mass shortages. People would be waiting in lines circa the 1970's and rather than complaining about how much they need to spend, they'd be complaining about not being able to buy any at all. Prices naturally fluctuate on commodities to keep supply and demand in equilibrium.

        Demand for oil products like gasoline is largely inelastic, in the short to medium term, anyway. So rising prices do not reduce demand all that much. In the 70s the lines of people waiting to

    • However, I'm actually a bit surprised that capitalism has been bowing out to world politics like this. It's uncharacteristic, to say the least. There must be money to be made that we're not universally exposing. I'd guess from the oil barrel price hikes, but I haven't done that level of bird-dogging yet.

      I'm sure they've done the math.

      Russian sales predictions are probably way down right now and Putin is expected to fail within a month or two at which point they can go back in and pick up where they left off (sorry, I meant "start rebuilding").

      This lets them cover their asses in front of the shareholders and get some good publicity at the same time!

    • Re: (Score:3, Interesting)

      by Gavagai80 ( 1275204 )

      With the west seizing Russian property right and left with sanctions, any western companies operating in Russia are at obvious extreme risk of retaliatory seizure.

    • Capitalism outside of Russia = "You keep the money"

      Capitalism inside of Russia = "The money keeps you"

    • Probably the concern comes from losing money if customers don't like that one is still doing business with the evil empire. Not sure why this doesn't work for business in China, but maybe China is so vastly more lucrative than Russia.

  • but they gained enormous lobbying power in the US, having diligently obeyed orders like good corporate lapdogs.

    I'm sure they'll come out on the winning side - as they should: corporations never do anything for idealistic motives, only to increase profits.

    • by Dinjay ( 571355 )

      > but they gained enormous lobbying power in the US, having diligently obeyed orders like good corporate lapdogs.
      > I'm sure they'll come out on the winning side

      Hmm.... are you sure? I heard on the internet that dogs are always on the wrong side :D

    • corporations never do anything for idealistic motives, only to increase profits.

      Blindly focusing on profit is also an idealistic move. You don't get a free pass on ideals just because they're (a) yours and (b) shitty.

  • NYSE:HPQ seems to be weirdly steady given this news. In fact, its weirdly bullish.
  • Trust me, if HP could continue getting that revenue by any means, they would. What this means is that the situation has become financially untenable. HP isn't leaving a single red cent on the table.

  • HP aren't turning their back on sales, they're turning their back on profit. Which will be a lot less than $1b.

  • Have a dead man's switch to wipe their systems. Russia can steal the hardware but nothing will run if the software is gone
  • Companies doing business in Russia should have kept doing business there... and added on a 50% fee to all goods and services, with it clearly stated that the entire 50% would go to Ukraine relief efforts. If Russians kept buying at this price, then they could start paying directly for the damage they have caused. If they refused the higher prices, then it would be no different then just voluntarily stopping business in Russia.
  • In an effort to look noble, they quote revenue. What about profit, and projected profit? It strikes me that very few large companies have the moral fortitude to forgo significant profits. I'll give them props when they release the profit foregone, and projected impact on share price.

  • https://www.wsj.com/market-dat... [wsj.com]

     
    "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price"--Warren Buffett (b. 1930)

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