IBM earnings stable thanks to cost cuts
International Business Machines said its first- quarter earnings slipped just 1 per cent as heavy cost-cutting minimized the earnings impact of a sharp drop in revenue.
The New York-based technology conglomerate said it earned 2.3 billion dollars in the quarter, compared to 2.32 billion dollars a year ago. Global revenues fell 11 per cent 21.7 billion dollars with sales down just 7 per cent in North America, 12 per cent in emerging markets and 18 per cent in Europe, the Middle East and Africa.
"IBM continued to perform well in a very difficult economic environment," chief executive Samuel Palmisano said. "This was due to our long-term strategic focus: shifting into software and services, divesting of commodity businesses and creating solutions that help clients reduce cost and conserve capital."
IBM has announced some 9,000 job cuts this year, reported dpa.