Hewlett-Packard reverses Australian loss to profit AU$54 million in 2018

The US multinational pocketed AU$54 million from its operations known as Hewlett-Packard South Pacific.

Hewlett-Packard South Pacific Pty Ltd has made its results for the 2018 financial year available, reporting a AU$100 million swing in profit from the AU$47.7 million loss it copped a year prior.

On its balance sheet, the local arm of HP Enterprise ended the year with AU$54 million in profit.

However, with minimal change in sales and services rendered for the year ended October 31, 2018, when compared to the previous reported period, the drastic financial change was mostly the result of the sale of one of its Australian properties.

HP South Pacific in December 2017 entered into an agreement with a third party to purchase its Forest Hill property for a consideration of AU$88 million.

The disposal, the company said, was completed in July 2018, with a gain on sale of AU$61.5 million. The sale of the building was followed by a leaseback of a portion of the office with an initial lease term of five years.

HP South Pacific ended the reported period with 860 employees -- 156 less than the company boasted in Australia a year prior.

During the 12 month period, the local arm of the company sold AU$536 million worth of goods, rendered services to the value of AU$347 million, and counted AU$73 million on its balance sheet as "other" income.

Total revenue for 2018 was AU$958.5 -- down from AU$980 million in 2017.

Receipts from customers was AU$1 billion and HP South Pacific's income tax expense was AU$4.1 million, up from the AU$1.2 million it paid a year prior. During the reported period, HP South Pacific was issued an income tax refund of AU$7.6 million.

According to its financial document, HP South Pacific considered its principal activities for the year as providing "secure software defined technology and services that enable customers to move data seamlessly across their hybrid IT environments and power the intelligent edge that runs campus, branch, and Internet of Things (IoT) applications".

Hewlett-Packard South Pacific is a company that is incorporated and domiciled in Australia. The immediate parent of the company is Hewlett-Packard Puerto Rico BV, incorporated in the Netherlands. Its ultimate parent entity is Hewlett-Packard Enterprise Company, which is incorporated in the United States.

Globally, HPE ended the first quarter of 2019 with $7.5 billion in revenue.

Following the reported date, HP Enterprise Services Consolidated Pty Ltd, a subsidiary of the consolidated entity, made a cash repatriation of AU$343 million due to deregistration, the company said.

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