IBM's second-period profit fell 22%, but positive outlook lifts stock 13%; results cheer Wall Street, offering upbeat signal on technology sector

Article Abstract:

IBM's profits decreased 22% for 2nd qtr 1996, meeting investors expectations. The company's stock price rose $11.875 on the news, closing at $103.625 on the New York Stock Exchange. IBM is optimistic over its earnings for the rest of the year. The company's earnings for the period were $1.35 billion, down from $1.72 billion in 1995's same quarter. Revenue increased 3.7 percent to $18.2 billion for the period. A decline in mainframe revenue lowered IBM's computer-hardware revenue 1% to $8.6 billion for the quarter. A slow European economy affected sales and maintenance revenue decreased 7% to $1.8 billion. Software acquisitions and investments increased the company's expenses by 4%. The company's PC division had its best quarter in several years. The financial report was welcomed during a week when IBM is suffering from reports of problems with the computer system it developed for the 1996 Olympics.

Securities, Company securities

---

IBM posts $538 million 3rd-period loss after unexpectedly big charge for Lotus

Article Abstract:

IBM reported a $538 million loss for 3rd qtr 1995 due to an expectedly large charge related to its acquisition of Lotus. The results are the first loss for the troubled company in seven consecutive quarters. The company reported that the $538 million loss was equal to 96 cents per share, compared to earnings of $710 million, or $1.18 per share in 1994. Revenue rose 8.6% during the quarter to $16.8 billion from $15.4 billion, but about 3% of that increased was due to currency exchange rates. IBM reports that the loss was caused by an unexpected pretax charge of $1.84 billion for its acquisition of Lotus, which is almost double what the company originally estimated. The company further reported that it would take another $800 million charge in the 4th qtr caused by job cuts. The company's hardware sales were also sluggish during the 3rd qtr.

Computers & Auxiliary Equip, Company Financial Information

---

IBM mixes good profit news, warnings; net edges past forecasts; remarks on mainframes by official cast chill

Article Abstract:

IBM's $1.29 billion in earnings for its 3rd qtr 1996 exceeds analysts' expectations, but cautious statements by company officials are raising concerns about the future. The earnings amount to $2.45 per share, slightly higher than the $2.43 predicted by industry observers. IBM's computer sales increased by 8.1%, PC sales rose 25% and computer-services income rose nearly 26%, but sales of software, mainframes and semiconductors declined. The company's expenses increased by 9% in the quarter. IBM invested $75 million on the 1996 Olympics and is increasing spending on special programs for small and medium-sized businesses. Mainframe sales are declining as more companies are leasing them instead of buying them. These sales are expected to be down even further in the company's 4th qtr, which may also be affected by currency conversions.

Company earnings/profit

Similar abstracts:

• Abstracts: Intel's rivals pose greater challenge by offering faster and better chips. Intel posts 44% rise in 1st-period profit on record revenue from Pentium chip
• Abstracts: I.B.M. surges as profits exceed expectations. Profit is flat at I.B.M., but revenue rises; per-share earnings top analysts' expectations
• Abstracts: I.B.M. tops Wall Street's profit forecast; but some ask if shares have outrun prospects. I.B.M. surpasses forecasts but it drops by 25 cents a share
• Abstracts: 3Com to buy Chipcom for $775 million; stock deal is part of trend toward consolidation in hot network market. 3Com agrees to purchase Chipcom for $700 million
• Abstracts: Dear Mr. Gates: my wife isn't buying the 'bug' story. Will a catch-95 with new computing hardware spoil your holiday?

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.