IBM Japan unit posts 32% drop in 1991 earnings
Article Abstract:
IBM Japan, IBM's largest overseas subsidiary, showed a sharp drop in profits for 1991 with income falling 32 percent and sales declining 4.1 percent. While IBM Japan did better than Fujitsu Ltd and Hitachi Ltd, whose earnings dropped 40 percent, this is the third year for income decrease and the second year in a row for sales decreases. IBM reported a $2.83 billion loss for 1991, but those figures did not include IBM Japan's figures. Analysts see the decline in Japanese businesses' profits as a result of a slowdown in Japan's economic growth, and IBM Japan's president Takeo Shiina sees sales improving in 1992, though not enough to predict profits. IBM Japan suffered less than its competitors due to better cost management and organization rather than its having a better market position. Net income for IBM Japan in 1991 was 54.8 billion yen down from 82.82 billion in 1990. Sales declined from 1.33 trillion yen to 1.27 trillion yen.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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NEC sets drive into Europe to sell PCs
Article Abstract:
NEC Corp plans to enter the European computer market in 1991. The move by Japan's number one computer maker is an attempt to penetrate markets outside of Japan, an effort that has been hitherto futile. NEC controls more than 50 percent of the Japanese market but has less than three percent of the U.S. market. NEC hopes to become a leader in the German computer market, the largest in Europe, and believes it can achieve market share leadership by 1994. Industry observers note that the European market is becoming extremely competitive as U.S. computer makers move in to offset a saturated U.S. market. NEC hopes to start in Germany, where it already has a good business in printers and monitors, and then move out to other European countries including France, Italy and Spain.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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