Hewlett-Packard Co. cashed in on rising international demand again in its second quarter, but that performance may not be enough to ease worries about the company's exposure to the ailing US economy as it prepares to digest the second largest acquisition in its 69-year history. The results released Tuesday came as no surprise because HP provided a snapshot of its latest quarterly numbers and outlook last week when the Palo Alto-based company jolted investors with the news about its plans to buy technology services provider Electronic Data Systems Corp. for $13.2 billion. The deal has raised concerns that Plano, Texas-based EDS will compound the headaches that HP may be facing if US demand for its personal computers, printers and other products and services remains flat or slumps as consumer struggle to cover high gasoline and food costs while businesses also clamp down on spending. Among other challenges, HP will likely have to make substantial layoffs from a combined work force of 210,000 employees while trying to blend two different corporate cultures after the EDS deal closes late this year. HP is counting on EDS to boost the demand for its services and computers among major companies and government agencies while improving its competitive position against IBM Corp., the leading seller of technology services. Echoing remarks from a week ago, Hurd assured reporters Tuesday that the acquisition will pay off. “Make no mistake about it: We will get the cost right and we will create value for shareholders,” Hurd said during a conference call. In a separate call with analysts, Hurd acknowledged the difficulty facing HP in the United States, where the company's second-quarter sales were unchanged from a year ago. “The best thing that I can tell you about the US is that it's a very spotty market and we try to maintain caution around it,” Hurd said.
