IBM profit climbs 65%, beating forecasts; across-the-board strength, especially in hardware, fuels 16% revenue gain

Article Abstract:

IBM's second-quarter 1999 results are better than expected and represent a 16% increase in revenue from the same time last year. All sectors - hardware, software and services - show higher results. Revenue and net income rose to $21.91 billion and $2.39 billion, respectively, up from $18.82 billion and $1.45 billion in second-quarter 1988. IBM's hardware business reports $9.38 billion in revenue, a rise of 22%. Even though its PC business still reports a loss of $153 million, that loss is down from last year's $436 million. The software sector reports $3.13 billion in revenue, up 9.1% and the high-growth computer services sector reports $7.99 billion in revenue, a gain of nearly 15%. Overall gross profit margin for the quarter is 37.5% as compared to last year's 38%. This is the second strong quarter in a row for the company, but analysts do not think the pattern can be sustained throughout the next half-year.

Computer and Office Equipment, Office & Computing Machines, Office equipment, Office equipment and supplies industry, Office equipment industry, Finance, International Business Machines Corp., IBM, Company sales and earnings, Company earnings/profit

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Kodak's share of film market has stabilized

Article Abstract:

Eastman Kodak Co.'s domestic share of film sales has stabilized in recent months at around 73%. Stability and aggressive cost cutting has led to upgraded earnings forecasts for Kodak. Analysts say that Kodak will report third quarter earnings of $1.20 a diluted share, up from the consensus in July of $1.10 a share. Economic problems in Japan have contributed to the abated pricing aggressiveness from Kodak's chief rival Fuji Photo Film Co.

Company Data, Eastman Kodak Co., Article

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Polaroid hopes new cameras click with young users

Article Abstract:

Analysts are not optimistic about Polaroid's plans to introduce new products in 1999 because they felt an aggressive move was needed long before this. In spite of plans to appeal to younger consumers, expand retail distribution and develop digital products, analysts seem to think a takeover might be in the cards.

Comment:

Big plans are needed to create turnaround in the big picture

Photographic equipment and supplies, Strategy & planning, Planning, Abstract, Cameras (Photography), Polaroid Corp., Cameras, PRD

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