IBM profits at low end of expectations, drop 29.7%

Article Abstract:

IBM will report a 29.7 percent decrease in earnings for 3rd qtr 1989, for total earnings of $877 million, or $1.51 per share. In 1988, earnings were $1.2 billion, or $2.10 a share. The lower earnings are due to slow revenue growth in the US and a delay in shipping the 3090 disk drive for IBM mainframe computers, the company announced. The product's delay is resulting in the leasing of equipment by customers who are awaiting delivery of the disk drive. IBM will be under pressure in the coming years to perform as well as it has in 1989. IBM is taking steps to improve its future sales: the successful 3090 mainframe computer line will be improved in 1990. Analysts are not optimistic about IBM's 1990 prospects. They cite problems with the transitions of other products, especially the IBM 4300 line of mainframes, which is being replaced. Customers may postpone mainframe purchases until the new one is out.

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Earnings rise 26.8% at I.B.M.; company is seen reaping benefits of cost controls

Article Abstract:

IBM reports earnings that are increased 26.8 percent for the 3rd qtr 1990. Analysts agree with management that the company is realizing benefits from cost controls initiated in the United States in 1989. The company's stock falls $4.375 early on Monday, Oct 15, 1990, because of rumors that IBM will issue disappointing news, but when the rumors prove wrong, the stock rebounds, closing at $99.25, down $1 from Friday, Oct 12. IBM's revenues rise 6.8 percent for the quarter, to $15.28 billion, from $14.31 billion in the same period in 1989. Earnings are up, to $1.11 billion, or $1.95 a share, from $877 million, or $1.51 a share, in the 1989 period. According to IBM Chmn John F. Akers, in spite of weakening economies worldwide, the company 'continues to make progress on the course we have set for the business.'

Cost control, Cost Reduction, Stock

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I.B.M. loss in quarter and year: $1.38 billion deficit posted in 4th period

Article Abstract:

IBM announces losses totalling $1.38 billion in the 4th qtr of 1991. Revenues are down 6.1 percent for the year and IBM reports an annual loss for 1991 of $2.83 billion on $64.79 billion in sales. IBM cites a sluggish world economy, increased competition and troubles with new product introductions as reasons for its poor performance. The slowdown in growth is the first reported by the computer manufacturer in 45 years. The downsizing trend hurts IBM's mainframe computer business as companies convert from using large systems to network microcomputers. Some analysts predict that IBM's new mainframe product line should improve in the future, however. The company intends to cut its workforce by 20,000 in 1992 to reduce costs.

Office machines, not elsewhere classified, Industry Analysis, Financial Report, Losses, Fourth Quarter

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