All the latest UK technology news, reviews and analysis


IBM delivers solid results in trying times

23 Jan 2013
ibm-logo-on-wall

IT industry bellwether IBM has posted a small dip in annual sales but seen profits rise, as the technology giant rode out the economic storms.

For its year ending 31 December 2012, IBM posted sales of $104.5bn, down 2.3 percent on the previous year's $106.9. Its fourth quarter results were marginally better, with sales of $29.3bn, a 0.6 percent dip compared to 2011's $29.5bn.

But profits were up to $16.6bn for 2012, compared to $15.9bn in 2011. Again quarterly results were slightly better, with its $5.8bn fourth quarter profits up 6.3 percent compared to the year ago quarter.

“Our performance in the fourth quarter and for the full year was driven by our strategic growth initiatives -growth markets, analytics, cloud computing, Smarter Planet solutions - which support our continued shift to higher-value businesses,” said Ginni Rometty, IBM chairman and chief executive.

And while sales fell slightly, much of that can be accounted for by currency fluctuations, IBM claimed.

Rometty also added that in the coming year, IBM would focus on areas such as big data, mobile solutions, social business and security.

Nonetheless, IBM's solid performance was given a boost by sales in emerging markets. In EMEA, its performance was far more sluggish, with annual sales dropping six percent year-on-year to $31.8bn – again IBM attributed much of this to unfavourable exchange rates.

IBM's passable performance stands in contrast to results posted by newer, more cutting-edge technology firms, such as Google. It yesterday confirmed that annual revenues topped $50bn for the fist time.

But IBM's results also need to be viewed in light of current economic conditions, with many market watchers predicting that large enterprises would clamp down on IT spending in the fourth quarter of 2012, because of uncertainty in the US over the so-called fiscal cliff.

  • Comment  
  • Tweet  
  • Google plus  
  • Facebook  
  • LinkedIn  
  • Stumble Upon  
More on Finance
What do you think?
blog comments powered by Disqus
Poll

Tech gifts for Christmas 2014

Is a new tablet on your wish list this festive season, or have they become yesterday’s fad?
13%
22%
13%
6%
46%

Popular Threads

Powered by Disqus
iPhone 6 is available in silver gold and space grey

iPhone 6 video review

The best iOS handset to date

Updating your subscription status Loading
Newsletters

Get the latest news (daily or weekly) direct to your inbox with V3 newsletters.

newsletter sign-up button
hpv3may

Getting started with virtualisation

Virtualisation can help you reduce costs, improve application availability, and simplify IT
management. However, getting started can be challenging

ibmv3may

Converting big data and analytics insights into results

Successful leaders are infusing analytics throughout their organisations to drive smarter decisions, enable faster actions and optimise outcomes

2nd/3rd Line Support Engineer

Search consultancy is currently looking to recruit for...

Android developer/Google Play Store/Amazon/REST

Android developer/Google Play Store/Amazon/REST This...

SAP Security and Risk Consultant - CONTRACT - West London

SAP Security and Risk Consultant - Contract - West London...

C# ASP.Net Developer

C# ASP.Net Web Developerrequired by a renewed company...
To send to more than one email address, simply separate each address with a comma.