IBM plays down decline of contracts’ value |
| Financial Times - Oct 18, 2010 |
A continued decline in the value of new services contracts signed by IBM in its latest quarter left a shadow over otherwise solid earnings and added to lingering unease on Wall Street about the durability of this year’s slow recovery in the information technology industry.
However, IBM executives issued a confident assessment of the state of the turnround, and the company raised its forecast for full-year earnings for the second quarter in a row.
US computer maker reported an 18 per cent increase in earnings per share, to $2.82, ahead of a consensus Wall Street forecast of $2.75, while revenues rose 3 per cent to $24.3bn, slightly ahead of expectations. The company’s shares slipped by nearly 4 per cent in after-market trading, erasing some of their recent, strong gains. IBM’s contract signings in its services division dropped by 5 per cent to $11bn in the three months to the end of September, with the outsourcing business down 15 per cent, echoing declines in the preceding two quarters.
Read Full Article from Financial Times
- Posted: 2010-10-18 21:39:18
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