I.B.M. posts $5.46 billion loss for 4th quarter; 1992's deficit is biggest in U.S. business
Article Abstract:
Just as analysts expected, IBM posted a huge $5.46 billion loss for the 4th qtr 1992, the biggest annual loss in US corporate history. The company had forewarned its shareholders about its fourth quarter charge against earnings to streamline its operations and reduce its work force. IBM's financial troubles underscore the continuing decline not only of its mainframe market but also its minicomputer business. It also reflects the market's technological shift to powerful microcomputers and the weakness of the economies of Japan and Europe, where IBM's biggest customers are. Analysts do not foresee any improvement for 1993 and predict that IBM's board will decide to reduce the dividend payout for the quarter by about half.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1993
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Big loss for I.B.M. in quarter; revenues down 7% as mainframes slip
Article Abstract:
IBM reports a loss of $285 million for the 1st qtr 1993, a figure which is in line with analysts' expectations. Perhaps because there were no drastic surprises, the company's stock value went up $1.375, to $50.625 on Apr 20, 1993, the day of the announcement. IBM's gross profit margin for hardware sales slipped to 29 percent during the quarter, compared to 48 percent for the same period in 1992. The company has initiated cost cutting measures for the 1993 1st qtr. Total operating expenses went down by 9 percent and is expected to decline even further, depending on its new CEO Louis V. Gerstner Jr. The cost cutting measures did not, however, make up for the decline in the company's mainframe business.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
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