Hewlett-Packard's chief executive Ms Carly Fiorina said yesterday that she remained confident of carrying off a merger with Compaq, as the company produced quarterly profit that beat ... lowered Wall Street expectations.

The computer and printermaker, which employs 2,200 people in the Republic, reported operating results and revenue that topped its own forecast of three months ago and an analyst consensus that has steadily been eroded. However, fourth-quarter profit fell sharply and the company said market conditions continued to be difficult. It is not counting on an economic recovery in 2002.

Ms Fiorina used a conference call after the report to defend the logic and outlook for the controversial merger plan.

"Despite the actions by some individuals I think it's way too early to conclude that this merger will not occur," Ms Fiorina said, referring to a rebellion against the merger by Hewlett and Packard family members. "We remain convinced this merger will occur," Ms Fiorina said.