Tuesday, April 15, 2003

Profits Up at I.B.M.

Profits Up at I.B.M. "I.B.M. reported solid gains in both sales and profit for the first quarter, showing again that the company has made itself into a bulwark of comparative stability amid the deep slump in the technology business.
I.B.M. executives declared the company "on track" to meet Wall Street's consensus estimates for profit of about $4.30 a share for the full year.
Still, growth in the quarter was not spectacular. Revenue at $20.1 billion, was up 11 percent from the quarter a year earlier. Profit increased 8 percent, to 79 cents a share. The revenue totals were buoyed by a big acquisition and a weak dollar, while the profit comparison was enhanced by cuts in I.B.M.'s work force and unprofitable operations.
But the steady performance, analysts said, indicates that the company's strategy of shifting away from computer hardware to rely increasingly on technology services and software has enabled it to weather the severe technology downturn fairly well."

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