IBM has announced fourth quarter results ahead of analyst expectations, with demand in Europe for IBM products and services outstripping other regions.
Fourth-quarter income was £1.72bn compared to £1.5bn a year ago, an increase of over 14%. Revenues increased to £15.3bn from £14.3bn, an increase of 7%.
Samuel Palmisano, IBM chief executive officer, said, "IBM delivered a powerful fourth quarter, reflecting the strength of our integrated business model. It was IBM's strongest fourth quarter ever.”
In the Americas fourth-quarter revenues were up 5%, but in Europe they rose 9%. IBM’s Global Services arm saw sales increase 10%.
The Personal Systems Group only increased sales by 2%. During the quarter IBM announced an agreement to sell the Personal Computer Division, a unit of the Personal Systems Group, to China’s Lenovo.
Instead of making PCs, IBM wants to concentrate on its business software and hardware platforms.