IBM forecasts surprisinglly good earnings for 2009

IBM Reports 2008 Fourth-Quarter and Full-Year Results
IBM forecasts surprisinglly good earnings for 2009

(ARMONK, NY - 20 Jan 2009)

Full-Year 2008:

* Record revenue of $103.6 billion;
* Record pre-tax profit of $16.7 billion;
* Record earnings per share of $8.93;
* Record free cash flow of $14.3 billion, up $1.9 billion, excluding Global Financing receivables.

Full-Year 2009:

* Earnings-per-share expectation of at least $9.20.

Fourth-Quarter 2008:

* Diluted earnings of $3.28 per share, up 17 percent;
* Net income of $4.4 billion, up 12 percent;
* Gross profit margin of 47.9 percent, up 3 points;
* Revenue of $27.0 billion, impacted by strong U.S. dollar, down 6 percent, down 1 percent adjusting for currency;
* Software revenues up 3 percent, up 9 percent adjusting for currency; pre-tax income up 15 percent;
* Global Technology Services revenue down 4 percent, up 3 percent adjusting for currency; pre-tax income up 35 percent;
* Global Business Services revenues down 5 percent, flat adjusting for currency; pre-tax income up 26 percent;
* Services signings of $17.2 billion, 24 deals greater than $100 million;
* Strategic outsourcing signings up 20 percent worldwide, up 44 percent in North America.

For the full press release, go to the website...