HP has formally confirmed its intent to split its business into two separate divisions (HP to Split into Two Companies), known as Hewlett-Packard Enterprise and HP Inc. The former will look after HP’s enterprise technology infrastructure, software and services businesses, while the latter will comprise HP’s personal systems and printing businesses.
Current head Meg Whitman will be CEO of HP Enterprise and chairman of HP Inc.New details about the split have now come to light, through a filing with the US Securities and Exchange Commission. The filing uses the previous year’s financial data to show how the divisions of the company would have performed, had the split gone ahead sooner.
Both of the new divisions will have sales worth about $55 billion. Had it been a standalone company, the new HP (which the SEC refers to as HP Enterprise) would have posted a profit of $1.6 billion on revenue of $55.1 billion last year. Sales would have fallen 4% YoY, while profits would have declined 19%.
The Enterprise Group would have been the largest business segment, posting almost $27 billion in revenue of $4 billion operating profit. Enterprise Services, offering outsourced IT services, would have taken $21.3 billion revenue and $818 billion operating profit. HP’s software unit would have generated $3.6 billion in revenue and $871 million profit.
HP Enterprise would have reported sales of $21 billion in the USA, $5 billion in the UK and almost $29 billion in ‘other countries’. The strength of the US dollar has affected HP’s overseas sales in recent months.
HP still plans to go ahead with the split this year (HP on Track to Split Businesses in November).
