As its borrowing expenses grow, IBM plans new measures to raise, save cash

Article Abstract:

IBM employs careful strategies to generate cash needed to fulfill obligations to departing employees. An unexpected 25,000 employees take advantage of departure benefits offered by IBM, and another 35,000 employees will be terminated by the end of 1994. The cost to IBM is $4.6 billion, which must be generated over the next 16 months. One move IBM chief financial officer Jerome B. York has devised is to sell $1 billion in uncollected bills as a triple-A-rated security. New stock for the employee purchase plan will be issued, and the pension fund will receive stock contributions instead of cash, a strategy gaining popularity among companies having difficulty meeting the requirements of retiring employees. The company's equity will be boosted by over $1 billion through these measures.

Prepackaged software, Column, Strategic Planning, Benefit Management, Financial Report, Pension Management

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IBM shares surge by 13% on earnings

Article Abstract:

Strong sales of computer hardware pushed IBM earnings up 15% for the latest quarter. This prompted investors to drive up IBM share prices 13% to $194.50. The stock move created an extra $20.88 billion in market capitalization for IBM. The products selling particularly well were the ThinkPad laptop, Netfinity servers and large mainframe computers. IBM also performed well in the computer software and services sector. The numbers came as a surprise to analysts who had forecast IBM losing hardware market share to Dell and Compaq.

United States, Electronic Computer Manufacturing, Computers & Auxiliary Equip, Company sales and earnings, Company earnings/profit

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