July 10, 2001 16:42
Compaq lowers Q2 sales forecast, blames Europe
NEW YORK, July 10 (Reuters) - Compaq Computer Corp. on Tuesday lowered its sales forecast for the second quarter, as the No. 2 personal computer maker contended with an industry-wide slowdown and fierce price competition.
Revenue for the second quarter will be about $8.4 billion, down 9 percent from the first quarter, primarily due to worsening economic conditions in Europe, Compaq said. The company said it now expects job cuts this year to total 8,500, and that it had cut 3,500 jobs so far this year.
The Houston-based company said in April that it expected its second-quarter revenue would be roughly $9 billion, or flat with the first quarter, and that profits would rebound strongly in the second half.
Compaq said it now expected earnings on an operating basis for its second quarter of 4 cents per share, down from the 5 cents a share the company had estimated in April.
