HP Takes Huge Quarterly Earnings Hit on EDS Write-Down

Hewlett-Packard (HPQ) delivered a sobering earnings report Wednesday, as accounting charges forced it to declare the biggest quarterly loss ($8.9 billion) in its history. And with sales down in all its major divisions, CEO Meg Whitman warned of tough times ahead.

The Palo Alto company disclosed last month that it would be taking a massive loss because of one-time charges, including a $9.2 billion write-down.

Whitman said Wednesday that the company has made progress but also faces many challenges, among them organizational issues, economic conditions in western Europe and Asia, a sales effort that is “not where it should be” and