New User:

-or-
Username:
Password:
Forgot your password?

Stock Market & Financial Investment News

News Breaks
January 4, 2013
13:00 EDTHPQHewlett-Packard calls WSJ article 'thoroughly misleading'
Hewlett-Packard (HPQ) issued a statement last night related to a Jan. 3, 2013, Wall Street Journal article, “Questioning Receivable Wisdom at H-P”, calling the story "thoroughly misleading." As part of its reply, HP noted that in FY12 the company generated $10.6B in operating cash flow and $7.5B in free cash flow and reduced its debt by $5.6B for the year, to a net debt position of $5.8B. HP added that the story's idea that the acceleration of cash via sold receivables added significantly to HP’s free cash flow generation is not accurate. HP said its receivables sales program has been in place since May 2011 and its impact on cash flow in FY12 was negligible, as previously noted in a 10K filing. In the WSJ article, author Rolfe Winkler wrote that sales of receivables are common at companies other than HP, but "for investors, they have cash-flow implications" as HP appears to be pulling more future cash flow forward via the practice. Winkler also contended that since the company does not disclose the discount at which it is selling receivables, investors can't tell how much future cash is being sacrificed and that "their growth is potentially worrisome." In early afternoon trading, shares of Hewlett-Packard fell 3c, or 0.17%, to $15.11.
News For HPQ From The Last 14 Days
Sign up for a free trial to see the rest of the stories you've been missing.
There are no results for HPQ

Sign up for a free trial to see the rest of the stories you've been missing.

I agree to the theflyonthewall.com disclaimer & terms of use