IBM Lifts Profit Forecast After Record 2009

SAN FRANCISCO—IBM Corp. lifted its 2010 profit target after reporting a record profit for 2009. IBM (Armonk, N.Y.) reported fourth quarter 2009 sales of $27.2 billion, up 1 percent compared with the fourth quarter of 2008. The company had a net income for the quarter of $4.8 billion, up nine percent compared to the year ago period. For full year 2009, IBM had a record net income of $13.4 billion, up 9 percent compared to 2008. Sales for the year hit $95.8 billion, down nearly 8 percent from 2008. IBM said it now expects earnings per share for 2010 to be $11, up from a previous target of between $10 and $11. Revenues from IBM's Systems and Technology segment totaled $5.2 billion for the fourth quarter, down 4 percent from the fourth quarter of 2008. Revenues from Microelectronics OEM increased 2 percent, IBM said. Fourth quarter revenues from the Software segment were $6.6 billion, an increase of 2 percent compared with the fourth quarter of 2008, IBM said. Four quarter sales for the Americas region totaled $11.1 billion, down 3 percent from the year-ago period, IBM said. Revenues from Europe/Middle East/Africa were $9.7 billion, up 2 percent, the company said. Asia-Pacific revenues increased 6 percent to $5.8 billion, IBM said. Revenue declined in 2009 compared to 2008 across all IBM's segments, including Global Technology Services (down 5 percent), Global Business Services (down 10 percent), Software (down 3 percent), Systems and Technology (down 16 percent) and global financing (down 10 percent), IBM said. "We concluded a strong year with a solid performance in the fourth quarter in which we again delivered growth in margins, profit and earnings," said Samuel J. Palmisano, IBM chairman, president and CEO, in a statement.