IBM expected to unveil plan to cut costs; program may include offer for early retirement and some plant closings
Article Abstract:
IBM will announce a cost-cutting plan that may involve plant closings and early retirement of employees. It is believed that IBM is attempting to reduce its workforce by as many as 10,000 to 15,000, even though some 22,000 employees have already left the company under other early retirement programs. IBM currently employs 223,000 in the US and 387,000 worldwide. The personnel changes will likely take place primarily in the US, where sales have been stagnant for several years. IBM's revenue is expected to be $63 billion for 1989, a six percent increase over 1988; earnings are expected to decline by eight percent to about $9 per share. Analysts are quickly reducing their expectations for IBM's 1989 year-end figures as rumors of closures and early retirement abound.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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IBM's outlook for '92 remains cloudy after 4th-quarter loss of $1.38 billion
Article Abstract:
IBM's loss of $1.38 billion for the 4th qtr of 1991 casts a pale cloud over the future of the computer maker and the computer industry in general for 1992. Industry observers say that beyond the 1st qtr of 1992, IBM's future remains unclear and is probably dependent on the world economy. The company is reporting strong sales for its mainframe line as well as its RS/6000 line of workstations and AS/400 line of minicomputers. Microcomputer sales suffer though and IBM reports an overall drop of 11 percent in hardware sales for the 4th qtr 1991 when compared with the same period in the previous. Some write-downs and a lower-than-expected tax rate are fueling hopes by bullish investors; analysts point out than many want to believe in Big Blue.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Big Blues: IBM earnings shock raises new concerns on economic rebound; makers of large computers face growing pressure, though not PC business; a jolt to the stock market
Article Abstract:
IBM indicates that earnings for the 1st qtr of 1991 will plunge by 50 percent. Analysts, who had expected flat earnings, are stunned. Most of IBM's product lines are involved. Only software, services and workstations seem unaffected. IBM suggests that things are even worse than they appear: the problem, according to IBM, is not a loss of business to competitors, but rather that customers have stopped buying, which means that other companies besides 'Big Blue' might also report bad results. Economists say that weakness in the computer industry will have important repercussions for the entire economy, but opinions differ about what, specifically, will happen. IBM's stock fell $12.75 on Mar 19, to $115.125 a share.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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