IBM's global strategy continues to deliver positive results
Citing strong performances in both emerging and established markets, IBM reported second-quarter 2008 diluted earnings of $1.98 per share from continuing operations Thursday (17 July 2008).
Those results are an increase of 28 percent as reported, compared with diluted earnings of $1.55 per share, including a 5 cents per share gain from the sale of the Printing Systems Division (PSD), in the second quarter of 2007. Excluding the gain in the prior-year period, diluted earnings for the second-quarter 2008 increased 32 percent year over year.
Mark Loughridge, Senior Vice President and Chief Financial Officer, discusses IBM's second quarter earnings in a recorded Webcast. For details, visit the IBM Investor page. Copies of the presentation slides and a detailed press release also are available.
Total revenues for the second quarter of 2008 of $26.8 billion increased 13 percent (6 percent, adjusting for currency) from the second quarter of 2007. Second-quarter income from continuing operations was $2.8 billion, an increase of 22 percent, compared with $2.3 billion, including the gain from the sale of PSD, in the second quarter of 2007. Without the gain, income from continuing operations increased 26 percent versus the comparable period last year.
"IBM had an outstanding quarter and a strong first half for 2008. These results demonstrate that IBM has the ability to thrive in both emerging and established markets. Once again, IBMers performed very well around the world," said Samuel J. Palmisano, IBM chairman, president and chief executive officer.
"We are continuing to see the benefits of IBM's transformation in recent years. Today IBM is a company with a distinctive business model that gives us a competitive edge in a global economy. We enjoy a steady base of recurring revenue and profits; a truly global reach and scale; services and products that deliver genuine value to clients wherever they do business; and a strong and flexible financial foundation that generates powerful cash flow and fuels our investment in growth opportunities.
"We feel good about our full-year outlook and our 2010 roadmap for $10 to $11 of earnings per share."
The company's total gross profit margin was 43.2 percent in the 2008 second quarter compared with 41.8 percent in the 2007 period.