IBM profits up despite $1bn currency hit

IBM computer system known as Watson at IBM's TJ Watson research centre, Yorktown Heights, New York IBM is seen as a bellwether for the technology sector

Related Stories

IBM has announced a rise in profits despite taking a $1bn (£639m) hit on currency movements.

Net profit for the three months to the end of June was $3.88bn, up 6% on the $3.67bn the company made a year earlier. Revenue fell 3% to $25.78bn.

The technology giant also said full year profits would be higher than previously expected.

Some technology firms have warned that tech spending may fall in the second half of the year.

'Raising targets'

"In the second quarter, we delivered strong profit, earnings and free cash flow growth," said IBM boss Ginni Rometty.

"Looking ahead, we are well positioned to deliver greater value to a wider range of clients and to our shareholders."

Analysts said the results were reassuring, particularly at a time when some other technology companies have expressed concerns about investment in the sector from the wider economy.

"They modestly missed on the revenue line, partially due to forex, and slightly on software and hardware revenue," said Amit Daryanani at RBC Capital Markets.

"But the big message is they beat earnings per share [expectations] handily and they're raising the full-year earnings target, and that's probably enough for the stock to keep working.

"It's a sign that this company can keep executing despite the revenue headwinds they have."

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • photo of patient zero, two year-old Emile OuamounoPatient zero

    Tracking first Ebola victim and and how virus spread


  • A young Chinese girl looks at an image of BarbieBarbie's battle

    Can the doll make it in China at the second attempt?


  • Prosperi in the 1994 MdSLost in the desert

    How I drank urine and bat blood to survive in the Sahara


  • Afghan interpetersBlacklisted

    The Afghan interpreters left by the US to the mercy of the Taliban


  • Flooded homesNo respite

    Many hit by last winter's floods are struggling to pay soaring insurance bills


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.