CIMdata PLM Industry Summary Online Archive
9 October 2008
Financial News
IBM Announces Preliminary 2008 Third-Quarter EPS of $2.05; Reaffirms Full-Year 2008 EPS Outlook of at Least $8.75
• Diluted earnings of $2.05 per share, up 22 percent;
• Net income of $2.8 billion, up 20 percent;
• Pre-tax income of $3.9 billion, up 19 percent;
• Revenue of $25.3 billion, up 5 percent.
IBM announced third-quarter 2008 diluted earnings of $2.05 per share from continuing operations, an increase of 22 percent, compared with diluted earnings of $1.68 per share in the third quarter of 2007. The company also reported net income of $2.8 billion, an increase of 20 percent. Revenue increased 5 percent, including 3 points of currency benefit, to $25.3 billion, compared with the third quarter of 2007.
IBM said it continues to expect full-year 2008 earnings per share of at least $8.75, or year-to-year growth of 22 percent.
The company’s gross profit margin in the third quarter was 43.3 percent compared with 41.3 percent in the third quarter of 2007. Pre-tax income was $3.9 billion, an increase of 19 percent compared with the third quarter of 2007.
At the end of the third quarter, IBM’s year-to-date free cash flow was approximately $6.4 billion and its cash balance was $9.8 billion.
“Our results demonstrate that the combination of a steady base of recurring revenue and profits, investments for growth in emerging markets, a range of products and services that deliver value to clients, and a strong and flexible financial foundation give IBM a competitive edge in good times and tough times,” said Samuel J. Palmisano, IBM chairman, president and chief executive officer. “We remain confident in our full-year outlook.”
IBM will provide more detailed information about its third quarter results during its regularly scheduled Webcast.
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