Hewlett-Packard, the computer and printer maker which employs 1,500 people at its Irish plant in Leixlip, Co Kildare, issued a profit warning after the market closed in the US last night.

The company cited a tough economic environment and weaker than expected demand for its products from both personal and business customers. It said earnings per share for the first quarter, which ends this month, would now be somewhere between 35 and 40 US cents per share compared to previous expectations of 42 US cents per share.

Last November, the company said it was comfortable with the consensus forecast which then stood at 44 US cents per share. That was at the same time as it stunned markets by announcing that full year profits had missed forecasts by nearly 20 per cent.