IBM raises 2009 earnings forecast by 5%

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IBM raises 2009 earnings forecast by 5%

Warwick Ashford

IBM's cost cutting measures that have included controversial job cuts have enabled the firm to post strong second quarter results.

The firm has also raised its 2009 earnings forecast by just over 5% to $9.70 a share.

IBM has tried to raise profits by automating tasks, pruning and expanding business areas according to revenue streams and shifting its workforce to less expensive locations.

The re-location strategy led to massive job cuts in the US and elsewhere. It caused considerable public debate, spurred by employee unions.

The strategy has also boosted IBM profits, which rose 12% year-on-year to $3.1bn, despite a 13% decline in sales to $23.3bn compared with the same period the year before.

Sam Palmisano, IBM chief executive said: "We are optimistic about how IBM is positioned to make the most of current growth opportunities as well as those that emerge as the economy recovers".

Alliance@IBM >>


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