Big Blue; hurt by a pricing war, IBM plans write-off and cut of 10,000 jobs; as firm loses market share, discounts in mainframes and PCs hurt earnings; a customer wields a sword
Article Abstract:
Pricing wars between IBM and its competitors are the major reason for the latest wave of IBM cutbacks. The company will cut 10,000 jobs and take $2.3 billion off 1989's earnings as a restructuring charge. Despite the efforts, industry analysts do not feel IBM is doing enough to streamline itself in an increasingly tougher marketplace. IBM says the cutbacks will lower annual costs by $1 billion and bring the 'balance point' to five percent, but securities analysts predict earnings will fall eight percent. Some industry executives think up to 30,000 more jobs will have to be cut at IBM. Product development opportunities in fast-growing technologies such as laptops, workstations and file servers are lagging behind competitors' developements due to IBM's deliberate decision-making style.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
User Contributions:
Comment about this article or add new information about this topic:
IBM net tumbled 85% in 3rd quarter, and the outlook for 4th period worsens
Article Abstract:
IBM reports that earnings fell 85 percent in the 3rd qtr of 1991, and the outlook for the 4th qtr is worse than industry observers had forecasted. Earnings for the 3rd qtr are reported at $172 million, or 30 cents a share, compared with $1.11 billion, or $1.95 a share, in the same quarter in 1990. Analysts had estimated that IBM would make $2.75 to $3.40 a share in the 4th qtr, but many revised their estimates downward, to $2.57 a share. IBM, which indicates that it expects an improved economic situation, says its cost-control measures are taking hold. The company continues to cut back its work force. IBM's stock closed up $3 on Oct 15, 1991 at $104.25 a share.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
User Contributions:
Comment about this article or add new information about this topic:
IBM reports profit jump; stock surges
Article Abstract:
IBM reports its best earnings since 1984 due to a decline in tax rate, continued strong sales of the AS/400 minicomputer, disk drive and personal computer sales. The RS/6000 workstation also has been selling extremely well. The currency-exchange situation also improved earnings as a weak dollar overseas turns into greater profit. Mainframe computer sales are not as weak as was expected after the company introduced its new mainframe line. IBM is planning a job reduction, and the charge of that action is likely to be ameliorated by the sale of its laser-printer, typewriter and office-supply business.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Giant missteps: how an IBM attempt to regain PC lead has slid into trouble; saga of OS/2 software shows firm's bureaucratic ills, hints problems ahead; the tension with Microsoft
- Abstracts: More job cuts due in Digital Equipment plan; latest round could total 10,000, or 9% of payroll, depending on revenue
- Abstracts: Digital to test IBM's mainframe strength. IBM likely to unveil potent mainframes in firm's biggest such move in a decade
- Abstracts: Making a phone call might mean telling the world about you; number identification service is a dream for marketers but a threat to privacy; name, home, pay, car model; party line
- Abstracts: IBM appoints Henkel to head European unit. IBM picks Riverso for top position in European unit. McKinney Excels as IBM's Europe chief but faces test from slowing demand