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IBM posts 12% income growth; presents rosy outlook

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Press Trust of India New York
Last Updated : Jan 19 2013 | 11:08 PM IST

Beating street expectations, global software major International Business Machines today posted a 12 per cent growth in income from operations at 4.4 billion dollar for the fourth quarter in 2008.     

The company had a four billion dollar income from operations in the December quarter of FY08, IBM said in a statement.     

However, the total revenue declined six per cent to 27 billion dollar in the last quarter last year as against 28.9 billion dollar in the year-ago period.     

"In 2008, IBM performed well in an extremely difficult economic environment. Clearly our strategic transformation --migrating to the more profitable segments of the industry, investing in growth regions of the world, and driving productivity through global integration-- is continuing to pay dividends," IBM Chairman, President and Chief Executive Officer Samuel J Palmisano said.     

Giving a strong guidance for 2009, Palmisano said that, "...with strong financial position, solid recurring revenue and profit streams and global reach, we are confident about 2009 and based on our 2008 performance, we are ahead of pace on our roadmap for $10 to $11 per share."     

IBM said that it expects full-year 2009 earnings of at least 9.20 dollar per share as against 8.93 dollar per share in 2008.      For the full year ended December 2008, IBM's income from continuing operations rose to $12.3 billion, an increase of 18 per cent as compared with the year-ago period.     

The firm had an income of 10.4 billion dollar in the corresponding period a year ago.

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First Published: Jan 21 2009 | 3:21 PM IST

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