Hardware, Software and Growth Markets Drive IBM's Q4 Profits
IBM saw fourth-quarter profits rise 9 percent on the strength of systems, software and growth markets.
Announcing its fourth-quarter 2010 earnings on Jan. 18, IBM said fourth-quarter net income was $5.3 billion, compared with $4.8 billion in the fourth quarter of 2009, an increase of 9 percent. Total revenues for the fourth quarter of 2010 of $29.0 billion -- increased 7 percent from the fourth quarter of 2009.
"We completed an outstanding year, with record profit and free cash flow, and exceeded the high end of our 2010 earnings per share roadmap objective," said Samuel J. Palmisano, IBM chairman, president and chief executive officer, in a statement. "We also capped a decade in which our shift to high-value businesses, our global integration of IBM, our investment in research and development of almost $60 billion and our acquisition of 116 companies have helped us to nearly triple our EPS and return more than $100 billion to shareholders.
"As IBM enters its second century, we will continue to focus on our long-term strategic initiatives -- growth markets, Smarter Planet Solutions, cloud and business analytics -- as we drive to achieve our new roadmap target of operating earnings per share of at least $20 in 2015."
During a call with analysts to discuss IBM's earnings, Mark Loughridge, senior vice president and chief financial officer of Finance and Enterprise Transformation at IBM, said, "Systems and Technology had fantastic performance, with 21 percent growth. We had growth in every platform, but the most impressive growth was in our System z mainframes, which were up almost 70 percent."
For more, read the eWeek article: IBM's Q4 2010 Profits Driven by Hardware, Software, Growth Markets.