IBM’s Return to Profitability

Published in 1992 (Computer Jagat)

IBM has made a welcome return to profitability following one of the most traumatic years in its history. The company reported 1st quarter net profits of $595million against losses of $1.7billion last time, on turnover up 3.3%at$14billion. John Akers, IBM chairman said, “Although worldwide economic conditions remain unpredictable, we are encouraged by our improved performance, particularly in the U.S and by the progress we are making in streamlining the company. IBM collapsed into the red last year, reporting a $ 2.8 billion loss for the 12 months. The losses included charges of $ 5.7 billion to cover thousands of layoffs and charges to retirement benifits in the US.

Despite the improved performance, hardware sales were poor, slipping 2.7% to $ 7.1 billion in the quarter. However, maintenance and service revenues grew by 36% to $ 1.3 billion and 19% to $ 1.2 billion respectively. ‘Overall, we are pleased with these results and we are on track.’ said Akers.

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