HP Inc. has suspended product shipments to Russia under US sanctions in response to President Vladimir Putin’s invasion of Ukraine.
During a first-quarter 2022 earnings conference call with investors, HP CEO Enrique Lores (pictured) said the company was preparing for “a range of scenarios” brought on by the dispute. “The well-being of our employees, their families and our customers and partners is our primary concern,” he said. “We are doing everything we can to keep them safe.”
The Russian-Ukrainian dispute is the latest in a series of global supply chain concerns that could impact the company in the future. While HP posted record revenue of $17 billion in its latest quarter, the company’s printing business has been hit hard by supply chain component shortages and logistical problems. And analysts say the supply chain will face more uncertainty as Russia and Ukraine supply palladium and neon gas which are heavily used in chipmaking.
Lores said the company would not be affected by supply chain transportation issues involving Russia and Ukraine, as the company ended shipping routes through the affected region last year. But Reuters reported earlier this week that technology components could be heavily affected by the dispute, with Russia’s palladium supply and Ukraine’s neon gas production at stake.
HP’s printing business was hampered this quarter by chip shortages – Lores pointing to supply chain issues for the company’s 4% loss in printing revenue in the quarter. Going forward, Lores told analysts, “with respect to the printing supply chain, we expect that we saw in the first quarter: component shortages and logistical delays to limit income”.
Companies around the world have launched economic sanctions against Russia following the unprovoked attack on Ukraine. And analysts expect a massive ripple effect on markets and businesses. Already, Russian banks have been banned from the SWIFT international banking communication system. HP is just the latest in a long line of multinational companies that refuse to do business with Russia.
As for HP, Lores said the company will closely monitor developments. “The difficult situation in Ukraine is the latest in a series of global challenges we have faced,” he said on the earnings call. “Time and time again our team has shown remarkable agility and determination and I have great confidence in their ability to handle these situations.”
HP shares rose Tuesday morning to 34.62 per share.