IBM Reports 2008 Fourth-Quarter and Full-Year Results

ARMONK, N.Y.—(BUSINESS WIRE)—January 20, 2009— IBM (NYSE: IBM):

Full-Year 2008:

  • Record revenue of $103.6 billion;
  • Record pre-tax profit of $16.7 billion;
  • Record earnings per share of $8.93;
  • Record free cash flow of $14.3 billion, up $1.9 billion, excluding Global Financing receivables.

Full-Year 2009:

  • Earnings-per-share expectation of at least $9.20.

Fourth-Quarter 2008:

  • Diluted earnings of $3.28 per share, up 17 percent;
  • Net income of $4.4 billion, up 12 percent;
  • Gross profit margin of 47.9 percent, up 3 points;
  • Revenue of $27.0 billion, impacted by strong U.S. dollar, down 6 percent, down 1 percent adjusting for currency;
  • Software revenues up 3 percent, up 9 percent adjusting for currency; pre-tax income up 15 percent;
  • Global Technology Services revenue down 4 percent, up 3 percent adjusting for currency; pre-tax income up 35 percent;
  • Global Business Services revenues down 5 percent, flat adjusting for currency; pre-tax income up 26 percent;
  • Services signings of $17.2 billion, 24 deals greater than $100 million;
  • Strategic outsourcing signings up 20 percent worldwide, up 44 percent in North America.

IBM (NYSE: IBM) today announced fourth-quarter 2008 diluted earnings of $3.28 per share from continuing operations compared with diluted earnings of $2.80 per share in the fourth quarter of 2007, an increase of 17 percent as reported. Fourth- quarter income from continuing operations was $4.4 billion compared with $4.0 billion in the fourth quarter of 2007, an increase of 12 percent. Total revenues for the fourth quarter of 2008 of $27.0 billion decreased 6 percent (1 percent, adjusting for currency) from the fourth quarter of 2007.

"A strong fourth quarter capped an outstanding year. 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," said Samuel J. Palmisano, IBM chairman, president and chief executive officer.

"With our 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 per share.

From a geographic perspective, the Americas' fourth-quarter revenues were $11.5 billion, a decrease of 2 percent (up 2 percent, adjusting for currency) from the 2007 period. Revenues from Europe/Middle East/Africa were $9.5 billion, down 12 percent (1 percent, adjusting for currency). Asia-Pacific revenues decreased 1 percent (1 percent, adjusting for currency) to $5.5 billion. OEM revenues were $615 million, down 31 percent compared with the 2007 fourth quarter. Revenues from the company's growth markets organization decreased 7 percent (up 6 percent, adjusting for currency) and represented 18 percent of geographic revenues.

Total Global Services revenues decreased 4 percent (up 2 percent, adjusting for currency). Global Technology Services segment revenues decreased 4 percent (up 3 percent, adjusting for currency) to $9.6 billion. Global Business Services segment revenues decreased 5 percent (flat, adjusting for currency) to $4.7 billion. IBM signed services contracts totaling $17.2 billion, at actual rates, a decrease of 5 percent ($15.6 billion, adjusting for currency, up 2 percent), including 24 contracts greater than $100 million. Short-term signings were $7.3 billion, a decrease of 7 percent at actual rates (1 percent to $6.6 billion, adjusting for currency). Long-term signings decreased 3 percent, at actual rates, to $9.9 billion (up 3 percent to $9.0 billion, adjusting for currency). The estimated services backlog at December 31 was $117 billion, adjusting for currency.

Revenues from the Software segment were $6.4 billion, an increase of 3 percent (9 percent, adjusting for currency) compared with the fourth quarter of 2007; pre-tax income increased 15 percent. Revenues from IBM's middleware products, which primarily include WebSphere, Information Management, Tivoli, Lotus and Rational products, were $5.2 billion, up 4 percent versus the fourth quarter of 2007. Operating systems revenues of $622 million decreased 6 percent compared with the prior-year quarter.

1 | 2 | 3 | 4  Next Page »

Review Article Be the first to review this article

Featured Video
Mid-Level Mechanical Engineer for Kiewit at lenexa, Kansas
System Designer/Engineer for Bluewater at Southfield, Michigan
Director of Process Engineering. for Tekni-Plex at Toledo, Ohio
Mechanical Engineer for Allen & Shariff Corporation at Pittsburgh, Pennsylvania
SENIOR GIS GAS SPECIALIST for James W. Sewall Company at , Any State in the USA
GIS - Systems Analyst for City of Olathe at Olathe, Kansas
Upcoming Events
ACE 2018 Conference at The Westin Indianapolis 241 W Washington St Indianapolis IN - Mar 20 - 22, 2018
ESPRIT World 2018 at Indianapolis Marriott Downtown 350 West Maryland Street Indianapolis IN - Jun 11 - 15, 2018
HxGN LIVE 2018 at The Venetian Las Vegas NV - Jun 12 - 15, 2018
IMTS2018 International Manufacturing Tech Show at McCormick Place Chicago IL - Sep 10 - 15, 2018
Kenesto: 30 day trial

Internet Business Systems © 2018 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise