HP to spin off its measurement unit

Abstract

Cutting itself off at the roots, Hewlett-Packard (HP) plans to take 16% of its business and create a new test-and-measurement company. With an estimated $7.6 billion in annual sales, the as-yet-unnamed company will provide products and services for the communications, medical, and chemical-analysis markets. remaining $39.5 billion computer and imaging business will continue to operate under the HP name. The roots of our new company go back to the earliest days of HP, which started as a test-and-measurement company, Edward W. Barnholt, who will become the new company's chief executive officer, told analysts last week. David Packard and William Hewlett started HP with $538 in a garage in 1938, first making oscilloscopes and entering the calculator and computer markets in the 1960s. Barnholt is currently HP's executive vice president and general manager of its measurement organization. HP's move is aimed more at making its computer business competitive than at boosting its test-and-measurement operatio...