Profits rise but sales slip at IBM

IBM has posted a 10% jump in net profits for the second quarter, although sales dipped by 1.8%.

For the three months ended 30 June, Big Blue said its net profits rose to $2.02bn (£1.15bn), but sales slipped to $21.9bn compared with the same period last year.

However, when sales from the PC business, which was sold to Lenovo, are stripped out of the overall results, IBM’s sales crept up by 1%.

IBM is currently in the process of expanding its IT services business with the growth of its operations in India.

Expansion in India, where the company has already hired thousands of extra staff to help complete IT outsourcing contracts, enabled IBM to increase its margins in the IT services market.

Software, middleware, server and mainframe sales all saw single-digit sales growth, although Unix sales slumped.

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