I.B.M. argues its case, but Wall St. is bearish

Article Abstract:

IBM Corp Chmn John Akers argues that his company's 1991 financial performance was an 'aberration' and plans to decentralize the corporation, but Wall St observers are not mollified by 1992 forecasts. In spite of IBM's plans to decentralize its operations and cut its payroll by 20,000, negative views toward IBM still prevail from some analysts. IBM seems to be addressing its problems with a growth attitude, while seeing the options provided by decentralization including divestment, investment and joint ventures. Akers anticipates that the change in IBM's structure will re-energize the company. IBM plans to increase its return on equity to 18 from its current 14 percent over the next three years, but it faces stiff competition from Japanese manufacturers. Some analysts are impressed with Akers' performance, believing that the planned changes are meaningful. IBM expects its revenues to increase by seven to eight percent in 1992 but is basing its model on a six percent growth rate.

Office machines, not elsewhere classified, Management, Growth (Physiology), Corporate reorganizations, Forecasting, Revenue, Management Style, Growth, Competition, Reorganization, Decentralization, Akers, John, Work Force Reduction

---

I.B.M. net up by 5.2% in quarter; strong gain lifts stock to a high

Article Abstract:

IBM posts strong results for its 2nd qtr 1990, fueled by rapid growth in its rental and software divisions. IBM reports net income is up 5.2 percent to $1.41 billion from $1.34 billion for the same period a year ago. Revenue is up 8.4 percent, to $16.5 billion in 2nd qtr 1990 from $15.2 billion for the same period a year ago. The stock market responds to the news by sending IBM's stock up $1.375 to close at $122.375. IBM's near future is uncertain, as cost cutting measures begin to take effect and the firm's new Summit mainframe computer is finally introduced.

Profits, Computer Industry, Profit, Financial Report, Second Quarter

---

Similar abstracts:

• Abstracts: I.B.M. sees shortfall in profits; warning is issued about 3d quarter; stock off $6 a share. I.B.M. sees a gloomy 2d quarter; analysts told that profits may again be disappointing
• Abstracts: Dull at first glance, I.B.M.'s latest have a surprise inside; its disk-control technology offsets a stodgy processor, the company says
• Abstracts: Japanese joining computer display venture. Sun stake to be sold by A.T.&T; once-feared computer alliance now outdated by NCR merger accord
• Abstracts: Novell adding weapons for the contest with Microsoft: through acquisition it hopes to mesh network and PC operating systems
• Abstracts: A marriage with video technology: Why not grab an image from the TV screen and use it in a report?

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