P.M. BRIEFING : IBM Discloses 5.2% Profit Gain
International Business Machines Corp. today announced a 5.2% profit gain on 9.8% revenue growth in the second quarter.
The world’s largest computer maker reported that good worldwide demand for its products contributed to the increases.
IBM Chairman John F. Akers said the revenue and earnings growth “was led by software, benefits from leasing activities and early results from our restructuring actions.”
The company earned $1.41 billion, or $2.45 a share, in the three months ended June 30, up from $1.34 billion, or $2.31 a share, a year earlier. Revenue rose to $16.49 billion from $15.21 billion.
Late last year, IBM undertook a major restructuring in the face of unexpectedly sluggish growth in the domestic market. Among other steps, the company said it would trim its work force by 10,000 jobs and repurchase about $4 billion of its stock.
