Hewlett-Packard has met its own lowered expectations for its second-quarter profits.

HP posted revenue of $11.6 billion for the quarter ended April 30. This total compares to $12 billion in revenue for the same period last year, a 3.33 per cent drop.

HP's pro forma net earnings were $356 million for the period, compared with $887 million in the second quarter of 2000.

Net earnings for the quarter were $319 million, compared with $935 million in last year's second quarter.

Weakness Carly Fiorina, HP's chairman, president and CEO, said: "Our results continue to be impacted by significant macro-economic challenges, and particular weakness in consumer and capital spending in the US and Europe.''

Revenue for the company's consumer business declined 8 per cent in the quarter, as slowed consumer spending hurt the PC and peripherals market. HP's corporate business, however, showed a slight gain.

HP saw its revenue slide 7 per cent year-over-year in the US markets. European markets also dropped 5 per cent, while revenue in the Asia region fell 6 per cent compared to last year. The vendor did point to a couple of bright spots, with the China market increasing 58 per cent year-on-year and revenue from the Latin America segment increasing 10 per cent.

The company continued to struggle with slow structural changes to its channel and sales operations. HP has been attempting to consolidate these for some time, but it's taking longer than expected, Fiorina said.

"There is no question about it, this was a tough quarter," Fiorina said.

Shares of HP (HWP) closed Wednesday up just over 5 per cent to $26.75 per share in moderate trading.