IBM Says Consulting Work Will Buoy Profit

IBM Corp. President Sam Palmisano, who becomes chief executive March 1, said Big Blue expects “a very tough economic year,” but that helping customers automate and integrate business processes will keep the company’s profit margin up.

“There’s a lot more margin involved because it’s a lot harder to do,” Palmisano said of the computer-consulting and services work, which is IBM’s largest business segment.

IBM, the largest seller of computer services and hardware, wants to continue consulting, software and server-computer sales to companies that are automating more of their internal processes, Palmisano said.

IBM’s gross profit margin in 2001 was 37%, up from 36.3% in 2000.

IBM shares fell 23 cents to $99.31 on the New York Stock Exchange.