IBM profits up 8% in second quarter

Company reports growth in software, services and hardware in Q2 2011

Tags: IBM (www.ibm.com)
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IBM profits up 8% in second quarter IBM has raised full year expectations based on its Q2 results, says Palmisano.
By  Mark Sutton Published  July 19, 2011

IBM has reported an 8% rise in profit for the second quarter of 2011 compared to Q2 2010, with income reaching $3.7 billion up from $3.4 billion.

Revenue for the quarter was up 12% to $26.7 billion, with strong growth across all sections of the company, which celebrates its centenary this year.

Samuel J Palmisano, IBM chairman, president and chief executive officer said: "In the second quarter our long-term strategic investments in the company's growth initiatives again helped drive strong revenue performance. 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 $13.25."

Revenues in the EMEA region grew 16% to $8.6 billion.

IBM's Global Services division saw pre-tax income up 4% to $2.2 billion, from revenue of $10.2 billion, up 10%.

Sales of IBM's middleware solutions software, which includes WebSphere, Information Management, Tivoli, Lotus and Rational were up 21%, while operating systems revenue was up 16%. Software pre-tax income was up 12% from the same quarter last year, to $2.3 billion.

The company also saw strong growth in the hardware segment, with pre-tax income for Systems and Technology reaching $393 million, up 112%, from revenue of $4.7 billion. IBM reported growth in revenues from System Z mainframe, Power Systems, System x, System Storage, Retail Store Solutions and Microelectronics OEM.

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