IBM reports higher profits, but stock slips

Article Abstract:

IBM reports improved earnings for 4th qtr 1994, but its stock price falls because of disappointing performance in the company's personal computer division and because of slow revenue growth. The company's 4th qtr income grew from $382 million or 62 cents per share in 1993 to $1.2 billion or $2.06 per share per share. Nevertheless, IBM's stock price fell $1.125 per share to $74.25 on Jan 23, 1995, when the latest figures are released. Revenue in the 4th qtr rose 2%, from $19.4 billion to $19.9 billion. Slow revenue growth was the main cause for Wall Street's lowered share values. Analysts say that IBM knows what it must do to raise its value and are waiting to see the company perform. Company officials say that revenue growth will be the main focus of 1995 but are declining to make specific predictions. The company will also be working to rejuvenate the personal computer division.

Computers, Electronic Computer Manufacturing, Financial Report

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IBM Credit unit posts 9.5% gain in annual profit

Article Abstract:

IBM Credit Corp announces 1992 earnings of $219.3 million, up 9.5 percent from $200.2 million in 1991. IBM's financial struggles are indicated by the fact that IBM Credit Corp's volume of new financing fell 6.5 percent, from $9.2 billion in 1991 to $8.6 billion in 1992. The unit's financing business with retailers and distributors, who mostly handle IBM's minicomputers and microcomputers, fell 14 percent to $4.2 billion. Return on average equity was a good 19.3 percent, down slightly from 20.3 percent the previous year. IBM Credit Corp finances the purchase of many of IBM's computer products; the unit also buys computing equipment to lease to others.

Prepackaged software, Misc. business credit institutions, Profits, Commercial finance companies, Financial Services, Profit, Annual Report, IBM Credit Corp.

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