HP CEO sees no demand improvement this year

* Promises more cost cutting

* Reaffirms commitment to cost cuts

By Gabriel Madway

SAN FRANCISCO, March 4 (Reuters) - Hewlett-Packard Co (HPQ.N) Chief Executive Mark Hurd said he does not expect any improvement in demand for the remainder of the year, and reaffirmed the company's commitment to lowering costs.

Echoing remarks he made two weeks ago, when the world's largest maker of personal computers slashed its full-year outlook, Hurd said on Wednesday that he expects weak conditions in the January quarter to linger.

"What we saw in Q1 is what we'll see the rest of the year, and I would add that if we hit those demand models we'll do fine on the bottom line," Hurd said at an investor conference in San Francisco.

Last month, HP cut its fiscal 2009 sales outlook by more than 10 percent, or around $14 billion, to a range of $112.5 billion to $116 billion. [ID:nN18450462]

HP is the world's second-largest technology services company, behind IBM (IBM.N). Its businesses also include: servers, printers and software.

Analysts say HP's diversification and recurring revenue could help protect it during the brutal economic downturn, although the company's first-quarter results showed the impact of a slowdown in business spending.