IBM says net rose, warns on Asia effect
Article Abstract:
IBM announced a 4th qtr 1997 profit of only 3.4%, and warned that its 1st qtr 1998 profit would fall short of the 1st qtr 1997 total. A strong dollar, weak Asian markets and several one-time expenses are combining to create a negative effect, the company said. The 1st qtr 1998 results could fall short of the 1st qtr 1997's $1.19 a share by 10 cents to 15 cents a share, according to Lawrence Ricciardi, interim CFO. Ricciardi attributed some of the quarter costs to IBM's recent purchase of a software maker, winter Olympics marketing expenses and pricing pressure on hard drives and PCs. IBM said its 4th qtr 1997 earnings reached $2.1 billion, or $2.11 in diluted earnings per share. By comparison, the 4th qtr 1996 totals were $2.02 billion, or $1.93 in diluted earnings per share. Basic per-share earnings rose from $1.97 in the 4th qtr 1996 to $2.16.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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IBM posts 13% drop in first-quarter net; despite weak sales gain, computer firm signals its cautious optimism
Article Abstract:
IBM's 1st qtr 1998 profit of $1.04 billion, or $1.06 a diluted share, represents a 13% decline from the 1st qtr 1997 results of $1.2 billion, or $1.16 a diluted share. Revenue unexpectedly rose a mere 2% over the same period, from $17.31 billion to $17.62 billion. Interim CFO Lawrence Ricciardi's caution against basing 1998 conclusions on the 1st qtr alone should please analysts, who have prepared to drop their forecasts further. An 8.2% decline in computer hardware sales, from $7.8 billion to $7.1 billion, is one of several problem areas. Software revenue, meanwhile, improved only 2% to $3 billion. The gross profit margin of 36.6% fell sharply below the 1st qtr 1997's 38.1% and 1st qtr 1996's 40.1%. Ricciardi also noted continuing PC pricing pressures, Asia-Pacific region problems and the strong dollar.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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IBM's net income soared 41% in the fourth quarter; stock climbs 9.8%, lifting industrial average; news is a relief to investors
Article Abstract:
IBM has reported a 4th qtr 1995 net income of $1.71 billion, an increase of 41% that buoys IBM stock prices 9.8% to $96.25 per share in Jan 18, 1995, trading. IBM's revenue for the same quarter increased to $21.9 billion from the $19.9 posted in 4th qtr 1994, a 10% increase that mollifies investors' concerns and fuels positive trading across the NYSE. Company officials attribute the growth to heavier-than-expected PC and mainframe sales as well as the reduction of extraneous costs in its PC division. IBM's services division exhibited the greatest degree of growth, drawing $4 billion in revenue for the quarter, a 25% increase. Software revenue increased 9% to $3.68 billion, largely bolstered by IBM's 1995 acquisition of Lotus.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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