IBM posts dismal 3rd-quarter results; aides given new powers to urge layoffs; European sales woes cited as stock falls by 6.6%; PC business bloodied

Article Abstract:

IBM reported a net loss of $2.78 billion for the 3rd qtr, FY 1992, and announced that it has given its managers the authority to recommend laying off workers. However, the company said that it is not planning to lay off workers, which would end the firm's 40-year-old full employment policy of not laying anyone off. IBM's 3rd qtr profits were only $86 million, the equivalent of 15 cents per share, down from $177 million, the equivalent of 31 cents per share, that it reported in the 3rd qtr, FY 1991. IBM's stock prices fell $5.125 to $72.875, the lowest in 10 years. Analysts estimated that IBM's microcomputer revenue fell 30 percent from 3rd qtr, 1991. The poor showings are due to poor European sales and a price war in microcomputers. The company's full-year results are not expected to be good, mainly because of low hardware profit margins.

Prepackaged software, Business planning, Layoffs, Layoff, Third Quarter, Financial Report, Losses, Work Force Reduction

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IBM warns Wall Street to brace for poor quarter; company says drops in net, revenue for 2nd period will exceed expectations

Article Abstract:

IBM announces that its 2nd qtr 1991 earnings will be even worse than its earnings in the 1st qtr. IBM also says it will record a charge - possibly $150 million or more - because it underestimated the number of employees willing to accept the company's severance package. Analysts had projected a profit of between 50 cents and $1 a share in the 2nd qtr, but IBM says its net income, counting the charge, will fall to below 50 cents a share. In the comparable period a year ago, IBM's net income was $1.41 billion, or $2.45 a share, on revenue of $16.5 billion. Some industry observers believe that IBM will show a decline in revenue in 1991, which would be the first such decline since 1946. IBM's stock fell $1.875 on Thursday, Jun 20, 1991, closing at $99.125.

Office machines, not elsewhere classified, Profits, Outlook, Computer Industry, Profit, Second Quarter

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