WSJ: HP to merge printing with PCs

After a poor quarter for Hewlett Packard's huge Imaging and Printing Group (IPG), the company reportedly plans to merge it with its PC division, Personal Systems Group (PSG).  

HP CEO Meg Whitman.

Under the plans, IPG's long term president Vyomesh Joshi will leave the company, according to the Wall Street Journal's All Thing's Digital blog, reporting sources familiar with the massive restructure.

HP has not issued a comment yet, however is expected to announce the plans Tuesday.   

The restructure would put IPG under former Palm boss Todd Bradley who heads up HP's US$44 billion PSG unit - once being considered by former HP chief Leo Apotheker to be spun off or sold after the spectacular failure of WebOS and HP's TouchPad tablet.

IPG, which makes the bulk of its revenue from the sale of printing supplies, rather than printers themselves, suffered a 7 percent year-on-year revenue decline last quarter, signaling downstream troubles for the unit. Its quarterly revenues were US$6.3 billlion. 

PSG suffered a 15 percent year-on-year decline with quarterly revenues of US$8.8 billion.

HP's other main business, outsourcing and application services, also suffered declines.

HP apparently sees a consolidated IPG and PSG unit as making more sense, according to the blog.

Combined, the pair would have represented US$16 billion of HP's US$30 billion net revenue last quarter.

HP CEO Meg Whitman scrapped former chief Leo Apotheker's plans to spin off PSG.

All Things Digital points out that IPG and PSG accounted for US$65 billion in sales in 2011 and would make it the largest unit within the company.