Hewlett Packard, which employs 1,500 people at Leixlip, Co Kildare, has reported a 12 per cent drop in after tax profits to $710 million (£473.3 million) in the fourth quarter. The slump is due to special charges of $170 million for voluntary severance programmes and fixed-asset write-downs.

Sales at its Irish operations increased by 26 per cent to £73 million on the back of strong demand in preparation for the Year 2000, the introduction of the euro and e-commerce.