IBM plans huge cutback, sets $2.1 billion write-off; computer giant also raises buy-out cost estimate as worker exodus grows
Article Abstract:
IBM has implemented extensive cost reduction measures, including buy-out offers to its employees, and is taking a $2.1 billion after-tax charge for building and equipment, which will decrease its profit by $3.70 a share in the 3rd qtr, FY 1992. Also, the company expects to take a $2.1 billion pretax charge for its employee buy-out program in the second half of FY 1992. A total of 40,000 workers, 12 percent of its 1991 workforce, have left the company already, attracted by buy-out offers or threatened by transfers to remote places, and fearing that the company may change its long-standing policy of not laying off workers. The company expects to have made $4 billion in cuts from late 1991 to late 1992. IBM assured its shareholders that its dividend, which yields about six percent currently, will not be cut. Most of the company's cuts will be in its semiconductor plants, as well as some mainframe units.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Computer Associates profit rose 48% in its third period; shares soar 20%
Article Abstract:
Computer Associates International Inc reports 3rd qtr FY 1993 profits of $80.2 million, or 48 cents per share, up from a restated $54.2 million, or 31 cents per share, in 3rd qtr FY 1992. Revenues jumped nearly 20 percent, from $419.1 million for the 1992 quarter to $510.5 million for the 1993 quarter, ending Dec 31, 1992. The company's stock rose $4.25 in heavy trading on the New York Stock Exchange to $25.25, surpassing the company's all-time high of $22.125, reached in 1989. The company says its sales of software for mainframes remained strong, even though the computers are declining in popularity, while its sales of PC software jumped 34 percent to $51 million. Some analysts believe that the company will try to acquire a better-known PC software company to bolster its image in that market sector.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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