IBM Profit Up 9%

Reported a net profit of $3.4 billion in the quarter

IBM said on July 19 that second-quarter net profit rose 9% but currency fluctuations pushed the computer giant's revenue below the expectations of Wall Street analysts.

IBM reported a net profit of $3.4 billion in the quarter which ended on June 30 compared to $3.1 billion in the same quarter a year ago.

Revenue increased 2% to $23.7 billion, less than the $24.2 billion forecast by analysts.

IBM said currency fluctuations reduced revenue by some $500 million in the second quarter.

"The difference with analysts' expectations is all currency," IBM chief financial offer Mark Loughridge said. "Our operations performed right on target."

"We are confident of our ability in the second half of the year to continue our strong business performance, grow profit and drive shareholder returns," IBM CEO Samuel Palmisano said.

IBM said revenue from its Americas operations increased by 3% to $10.2 billion in the quarter while revenue dropped 6% in Europe, the Middle East and Africa to $7.4 billion.

Asia-Pacific revenue increased 9% to $5.4 billion.

"Europe should see improving trends and overall for the IBM corporation it should be the same," Loughridge said.

IBM said it signed services contracts during the quarter totaling $12.3 billion a decrease of 12% over a year ago.

Copyright Agence France-Presse, 2010

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