17-04-2008
IBM confirms rise in profits
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Multinational firm IBM has reported a significant increase in profits.
The company has confirmed that, in spite of concerns in relation to the performance of the US economy, profits for the first quarter of 2008 have increased by 26 per cent.
"This is great for the street, great for technology. IBM is a bellwether for global technology issues, especially the services area," said Ted Parrish, co-portfolio manager at Henssler Equity Fund.
Zach Rosenstock, an analyst at Wayne Hummer Wealth Management, added: "The magnitude of the beat was unexpected. You're seeing strength in all of their business lines."
Specifically, while IBM reported first quarter profits of $1.84 billion (£596 million) in 2007, this year the figure has risen to $2.32 billion.
The company has also benefited from the current weakness in the US dollar.
With a history going back to the late 19th century, IBM was first incorporated as the Computing- Tabulating- Recording Company in 1911.