Menu
IBM shows higher 2005 profit, but flat sales

IBM shows higher 2005 profit, but flat sales

IBM ended 2005 with strong earnings, but essentially flat sales, as it reported net income for the year of US$8 billion on revenue of $91.1 billion.

The company exited PC manufacturing in early 2005, selling its operations to China's Lenovo Group. The change reverberated through IBM's financial results throughout the year, as it reported declining revenue compared to periods in the prior year, which included the PC business. Excluding PC revenue, IBM's 2005 revenue rose 3%.

IBM's revenue in the fourth quarter, ended Decemebr 31, was $24.4 billion, around $1 billion shy of analyst estimates. That total represents a 1% decline from 2004's fourth-quarter revenue, excluding PC revenue.

Income for the quarter was $3.2 billion, up 13% from 2004's fourth-quarter income.

IBM is compensating for a tough spending environment by tightening its operations, casting off underperforming businesses like its PC unit and targeting high-margin opportunities. Its vaunted Global Services business posted a 5% sales decline in the fourth quarter and eked out 3% growth for the year, reporting total revenue of $47.4 billion, but increased its profitability by boosting its gross margins.

Gross profit margin improvement in the quarter of more than five points shows the benefits of the company's focus on more profitable, "high-value segments" of IT, coupled with emphasis on productivity and integration, IBM chief executive officer Sam Palmisano said in a prepared statement. The company's business model is "much more balanced and profitable than it was just a few years ago," he says.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments