IBM Profits Defy Gloomy Forecasts From Analysts

By Evening Standard, London

Apr. 17–Computer-services firm IBM is the latest technology bellwether to defy analysts’ predictions of a slowdown, recording a better-than-expected first-quarter profit.

Chief executive Samuel Palmisano said he is confident IBM will withstand the US economic slowdown.

While the falling dollar helped boost the value of sales from overseas, it also saw US sales grow 6 percent.

IBM turned in a net profit of $2.32 billion (UKpound 1.17 billion), up 26 percent from $1.84 billion a year earlier. Sales rose 11 percent to $24.5 billion, beating the average projection of $23.6 billion.

Sales in Europe, the Middle East and Africa surged 16 percent as IBM won contracts with companies such as Transalliance, a French freight hauler. Asia-Pacific revenue climbed 14 percent.

Sales in IBM’s technology services unit, which manages computer systems and data centres for corporate clients, climbed 17 percent to $9.68 billion. Revenue from software was $4.85 billion.

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