IBM Q4 net income increases 9pc

19 Jan 2011

IBM has completed “an outstanding year, with record profit and free cash flow, and exceeded the high end of our 2010 earnings per share road map objective,” said Samuel J Palmisano, IBM chairman, president and chief executive officer upon the company’s releasing its 2010 fourth-quarter and full-year results.

IBM’s fourth-quarter 2010 diluted earnings were US$4.18 per share, compared with diluted earnings of $3.59 per share in the fourth quarter of 2009, an increase of 16pc.

Fourth-quarter net income was $5.3bn compared with $4.8bn in the fourth quarter of 2009, an increase of 9pc. Total revenues for the fourth quarter of 2010 of $29.0bn increased 7pc (7pc, adjusting for currency) from the fourth quarter of 2009.

“We also capped a decade in which our shift to high-value businesses, our global integration of IBM, our investment in research and development of almost $60bn and our acquisition of 116 companies have helped us to nearly triple our EPS and return more than $100bn to shareholders,” Palmisano said.

“As IBM enters its second century, we will continue to focus on our long-term strategic initiatives – growth markets, Smarter Planet Solutions, cloud and business analytics – as we drive to achieve our new road map target of operating earnings per share of at least $20 in 2015.”

IBM’s full-year 2010 results

Net income for the year ended 31 December 2010 was $14.8bn, compared with $13.4bn in the year-ago period, an increase of 10pc. Diluted earnings were $11.52 per share compared with $10.01 per diluted share in 2009, an increase of 15pc, the eighth consecutive year of double-digit EPS growth. Revenues for 2010 totalled $99.9bn, an increase of 4pc (3pc, adjusting for currency), compared with $95.8bn in 2009.