Hewlett-Packard’s Profit Rises, With China’s Help

The Hewlett-Packard Company posted a 14 percent increase in quarterly profit on Monday despite an 8 percent decline in revenue, helped by a strong performance in China and improved profit margins in its services business.

The results were in line with preliminary figures that Hewlett gave two weeks ago, which had topped Wall Street’s estimates at the time. Stock in H.P. fell slightly in after-hours trading.

Hewlett, a hardware and technology services company that is a bellwether for information technology spending, has been more cautious than some of its peers in predicting an economic turnaround.

The chief financial officer, Cathie Lesjak, called the results “solid.” She said the market in the United States, particularly in the consumer business, was recovering.

Ms. Lesjak said the strength of a recovery next year was largely dependent on demand in Europe, which remains weak.

H.P.’s services revenue rose 8 percent, and signings were strong, putting it in good position for next year, said Mark V. Hurd, the chief executive of H.P.

Sales of PC units rose 8 percent, as the company continued to take market share, but revenue fell 12 percent as consumer demand focused on smaller and less expensive models. PC revenue in China rose 40 percent.

A Kaufman Brothers analyst, Shaw Wu, said Hewlett’s report showed hints of recovery in a number of its business units, including PCs and printers.

“They’re basically pointing to year-over-year growth in the January quarter,” Mr. Wu said. “It’s a good sign.”

Hewlett’s diversified business model, recurring revenue streams and focus on cost controls have provided it with a solid cushion during the downturn.

Although its printer business has struggled, PCs and servers have performed relatively well as the company continues to shift its focus to information technology services after last year’s purchase of E.D.S., now known as H.P. Enterprise Services. Hewlett reported a net profit of $2.4 billion, or 99 cents a share, in the quarter, up from $2.1 billion, or 84 cents a share, a year earlier.

Revenue in the period, which ended Oct. 31 and was the fourth quarter of Hewlett’s fiscal year, fell 8 percent, to $30.8 billion from $33.6 billion.

Stock in Hewlett, which is based in Palo Alto, Calif., closed at $51.02 and fell to $50.83 in after-hours trading.