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At a meeting with financial analysts in SanFrancisco today,


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chief Carly Fiorina said she expects to see revenue growth of between 2% and 4% next year, equal to her expectations for growth in technology spending.

But she declined to raise guidance for the quarternow under way, despite reports of strong Christmassales over the Thanksgiving weekend. "The reason isthat because the economy continues to be uncertain and, at the same time, we want to make sure we are not getting ahead of ourselves," she said.

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She pointed out that stronger holiday sales werenecessary in light of the shortened selling seasonthis year. H-P has said it expects some seasonal liftaround the holidays, but that it is likely to be abouta third below normal.

"I'd describe the economy as stable but notaccelerating," said Fiorina.

Given the uninspiring macro outlook, she returnedto a favorite postmerger theme: cost-cutting, or asFiorina says, focusing on "what lies in our control."She said the company plans to notch $3 billion in costsavings in the fiscal year that just began, ahead ofthe original plan for $2.5 billion. The company saidit's already achieved $2.4 billion in annualizedsavings.

In other news, CFO Bob Wayman said FY03 pensioncosts will rise sharply, to an estimated $1.7 billionin 2003 from last year's $1 billion or so. The companyis reducing its expectation for pension returns from9% to 8.5%.

The company continues to aim for double-digitgrowth in its printing division in 2003 and wants toturn a profit in its PC arm by the end of the firsthalf of the current fiscal year.