HP’s Bradley Says PC Group Worth More Than Quarter of Sales

Hewlett-Packard Co. (HPQ) Executive Vice President Todd Bradley said the personal-computer division, which the company may spin off or sell, is worth more than a quarter of its annual sales.

The personal systems group, which sells notebooks, desktops and other computing devices, is worth “significantly” more than one-fourth of its annual revenue, Bradley, who runs that division, said in an interview on “Bloomberg West.”

Hewlett-Packard, which last week announced a sweeping overhaul aimed at focusing on software, generated $40.7 billion in revenue from the PC division in the last fiscal year, or more than 32 percent of the company’s total sales of $126 billion.

“We’re well positioned,” Bradley said. “It was just a prudent business decision.”

Bradley said the Palo Alto, California-based company could spin off a PC business that has opportunities to capture market share in growing regions including Latin America and Asia.

In an interview yesterday, Hewlett-Packard Chairman Ray Lane said that a spin-out “should free shareholder value” and that he and Chief Executive Officer Leo Apotheker are spending the week talking to investors around the world who may want to hold Hewlett-Packard stock for the longer term.

Hewlett-Packard rose 9 cents to $24.54 today in New York Stock Exchange composite trading. The shares have lost 22 percent of their value since Aug. 17, the day before Bloomberg News reported the company would explore divesting the PC division and acquire software company Autonomy Corp. for $10.3 billion.

To contact the reporters on this story: Cory Johnson in San Francisco at cjohnson114@bloomberg.net; Aaron Ricadela in San Francisco at aricadela@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

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