IBM 1st-Qtr Net Falls 32%; Sees Second-Half Pickup (Update5)
By Paul Horvitz
quote.bloomberg.com
Armonk, New York, April 18 (Bloomberg) -- International Business Machines Corp. said first-quarter profit fell 32 percent, in line with reduced forecasts, as customers cut orders. IBM predicted a pickup in the second half, particularly in services.
The world's largest seller of computer services and hardware expects to meet analysts' 2002 profit forecast of $4.16 a share, Chief Financial Officer John Joyce said. Services sales may grow at a percentage in double digits by the end of the year, he said. IBM's shares rose as much as 2.9 percent on the forecast.
IBM was hurt in the first quarter by lower sales in all businesses and all regions, and by losses in its division that makes semiconductors and hard-disk drives. Sales of server computers fell 21 percent from a year ago. Chief Executive Sam Palmisano, in a statement, blamed ``widespread (order) deferrals,'' though he added that conditions will improve this year.
``The second half they expect to be strong, but it's not going to be (like turning on) the spigot,'' said Alan Loewenstein, co-manager of the John Hancock Technology Fund, who sold his IBM shares last year and says he might start buying again. The firm manages about $1 billion in technology stocks in various funds. |
