IBM shares fall further as analysts and computer experts urge more cuts
Article Abstract:
IBM's stock falls $4.25 to $51.875 in very heavy composite New York Stock Exchange trading on Dec 16, 1992, as many computer industry professionals and analysts say IBM needs to make more aggressive cost-cutting measures. The day before, IBM said it would take a $6 billion pretax charge to cover the cost of cutting assets of the company's faltering mainframe business and at least 25,000 more jobs from its payroll. But some analysts say the company needs to cut at least 25,000 more jobs from its Byzantine bureaucracy. Gartner Group consultant James Cassell says the prices of IBM mainframes may begin falling by one-quarter per year as the computers become commodity products. Some analysts are slashing their earnings predictions for 1993, and the Duff and Phelps credit rating agency demotes IBM's debt from double-A to double-A minus.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Jitters over IBM job reductions drag industrials down 9.46 points
Article Abstract:
The Dow Jones Industrial Average fell Sep 29, 1992, partially because of fears triggered by IBM's eliminating 40,000 jobs by the end of 1992. IBM is expecting to reduce costs by $4 billion per year because of its cuts. IBM stock decreased by one and 3/4, to 81 in trading Sep 29, 1992. Because IBM's stock prices fell to a 10-year low, the industrial average fell 9.46 points, to close at 3266.80. However, Standard and Poor's 500-stock index rose .18 to 416.80, and the New York Stock Exchange Composite Index closed at 228.90, an increase of .20. The Dow Jones average was aided by an announcement of restructuring from Sears Roebuck and Co that caused its stock prices to rise by 3 and 3/8, to 44 and 3/4. Companies' high unemployment claims are a major factor in the fall of the industrial average.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Comment about this article or add new information about this topic:
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