IBM cutbacks fail to impress the street
Article Abstract:
IBM stock prices fall despite a recently announced work force reduction of an additional 8,000 positions and the write-off of equipment and buildings worth billions of dollars. In Sep 1992, IBM stock sunk to a price level that was lower than any point since Nov 1982. IBM has long been viewed as a dependable growth stock, but recent performance indicates that the computer maker is vulnerable to market trends. IBM maintains that its investor-attractive six percent dividend is safe, but some market observers believe that the dividend will not last beyond 1994. In Jan 1991, market analysts predicted a 1992 earning level of $12.61 for IBM stock, but current predictions have fallen to $5.32 per share. The company has discounted its mainframe computers by up to 40 percent to boost sales. Combined with cost reductions, IBM forecasts $4 billion in yearly savings, but investment advisors continue to urge investors to sell IBM shares.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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IBM calls on two ex-officers two help in crisis; company says the return of Cassani and Rizzo is not a slap to Akers
Article Abstract:
IBM Chmn John F. Akers calls back two popular retired executives to help him run the embattled company. It is unclear if the move to call back former Vice-Chairmen Kaspar Cassani and Paul Rizzo, effective Jan 1, 1993, reflects weakening support by the board of directors for Akers. A Dec 18, 1992, memo from Akers to top managers said that Rizzo would help Akers in the United States while Cassani would work in Europe. Rizzo is already taking a bigger role, though, by helping plan IBM's crucial multimedia strategy. Analysts say Akers has made a tactical mistake by eliminating many rivals for his job. IBM is suffering its worst crisis in its history, with layoffs and a cut in the company's dividend a distinct possibility.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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IBM shares rise on a forecast by Akers for '90
Article Abstract:
IBM shares rose $1.625 to close at $109 on Apr 30, 1990 after chairman John Akers forecasted a good year for the company in 1990. A restructuring plan in 1989 that resulted in a $2.4 million charge against 1989 4th qtr earnings is expected to yield $1 billion in annual savings by 1991. IBM will trim 10,000 employees in its U.S. operations by the end of 1990, while employment worldwide will hold steady. The industry is expected to grow at a rate between seven and ten percent. IBM intends to expand its presence in the laptop and home microcomputer market in 1990.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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