I.B.M. net fell 84.5% in 3d period; but the stock jumps as progress is cited in cutting expenses

Article Abstract:

IBM reports that earnings fell 84.5 percent and there was 5.6 percent less revenue in the third quarter. Earnings for the 3rd qtr ended Sep 30, 1991, are given as $172 million, or 30 cents a share, a fraction of the $1.11 billion, or $1.95 per share, in 1990. Revenue is reported at $14.43 billion, down from the $15.28 billion in the previous year. IBM's bad news is offset by good news: the computer company, which has been trying for years to reduce costs, finally has managed to do so. If a $100 million special charge to cover costs of employees leaving the company is factored out, IBM's costs are down one percent. Research and development costs are down too, by about the same amount. The work force is 50,000 employees smaller than the high point of 406,000 in 1985 and an additional reduction of 20,000 is planned for 1991. IBM's stock closes up $3 on Oct 15, at $104.25.

Computer industry, Cost control, Cost Reduction, Third Quarter, Work Force Reduction

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A rebound for I.B.M. in quarter; $595 million profit lifts shares by 75 cents

Article Abstract:

IBM Corp rebounds from its 1991 losses to earn $595 million in the first quarter of 1992. In 1991, IBM lost a total of $2.8 billion, although a majority of the loss is due in part to a one-time accounting charge of $2.26 billion. IBM's 1991 revenues also dropped for the first time in 45 years to $64.8 billion from $69 billion. IBM implemented a variety of changes which resulted in the 1992 first-quarter gain. IBM decided to separate into a variety of subsidiaries, and eliminated 29,000 positions in 1991. IBM plans to reduce its work force by an additional 20,000 employees in 1992. Officials feel the new business plan has been very effective.

Prepackaged software, First Quarter

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