IBM sales slide
22 July, 2015, 12:00 am
IBM has reported a fall in sales for the 13th consecutive quarter.
The world’s largest technology services company said that revenue fell 13.5 per cent to $US20.8billion ($F44.49b), while net profit fell 17 per cent to $US3.5b ($F7.49b).
The strong US dollar and IBM’s decision to move away from its hardware business to focus on higher-margin operations both hit its performance.
Chief executive Ginni Rometty said that the second-quarter results reflected the company’s ongoing transformation. “We continue to transform our business to higher value and return value to shareholders,” she said.
US sales fell 8 per cent, while European, Middle East and African sales dropped 17 per cent.
However, its worst performance was in Brazil, Russia, India and China where sales fell 35 per cent.
IBM said much of the fall was because of the impact of the strong US dollar and the sale of its System x business. Excluding that unit, sales were down by just 18 per cent.