HP's woe after nine year low

Hewlett-Packard's stock hit its lowest level in nine years as CEO Meg Whitman told investors 2013 will be a "fix and rebuild year" for the embattled company.

The stricken computer manufacturer wants to stabilize the business and lay the foundations for a multiyear turnaround according to Whitman, who was speaking at the company's annual Securities Analyst Meeting in San Francisco.

During her keynote, Whitman told investors that despite the setback, the company is positioned to extend its leadership into the major trends driving IT investment such as cloud computing, information optimization and data security.

Whitman went on to reassure shareholders that despite the challenging environment, the company is on track to deliver on its saving targets.

Restructuring is expected to be completed at the end of fiscal 2014, as the company says it has maintained research and development spending, along with a steady focus on preserving the long-term health of the business.

“HP has a powerful set of assets, a culture of engineering innovation and a trusted brand,” Whitman says.

“Now, we have to focus on bringing our incredible assets together to deliver for our customers, employees and shareholders.”

Whitman talked through a multiyear roadmap to turn the company around during her speech. The CEO says she expects the HP's revenue to be growing in line with gross domestic product as well as operating profit growing faster than revenues by 2016.

HP’s executive vice president and chief financial officer Cathie Lesjak provided a financial outlook for the company in fiscal 2013, estimating its earnings-per-share to range from US$3.40-$3.60, heavily below Wall Street's prediction of $4.18 a share.