IBM Q2 profits hit US$3.7bn as sales reach US$26.7bn

19 Jul 2011

IBM reported second-quarter revenues of US$26.7bn, up 8pc year-on-year. This yielded the technology giant an impressive profit of US$3.7bn, up from US$3.4bn a year ago.

“In the second quarter, our long-term strategic investments in the company’s growth initiatives again helped drive strong revenue performance,” said Samuel J Palmisano, IBM chairman, president and chief executive officer.

“Hardware, software and services revenue grew at double digits, and we achieved strong profit and free cash flow growth.

“As IBM begins its second century, we continue a process of transformation, positioning the company to lead in the future and deliver higher value to our clients and our shareholders. Given our strong start to 2011, we are raising our full-year operating earnings per share expectations to at least US$13.25,” Palmisano said.

IBM raised its expectations for full-year 2011 GAAP diluted earnings per share to at least US$12.87 from at least US$12.73.

Total Global Services revenue increased 11pc to US$10.2bn, software revenues increased 17pc to US$6.2bn and hardware revenues reached US$4.7bn, up 17pc.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years