IMB’s Profit Climbs 18.3% in 4th Quarter
International Business Machines Corp. on Tuesday said its fourth-quarter profit grew 18.3%, lifted by surging demand for computer services and stronger sales of software and hardware.
IBM said it earned $2.02 billion, or $3.93 per share, in the quarter ended Dec. 31. That was up from $1.71 billion, or $3.09 per share, in the year-ago period.
The results were the latest sign of a rebound at the world’s largest computer company and generally fell within the forecasts of industry analysts.
Analysts had expected the Armonk, N.Y.-based company to report a per-share profit of $3.96.
But some analysts had said that IBM would have to post earnings of at least $4 a share to satisfy rising enthusiasm about the company’s performance.
The results were released after the close of financial markets. In Tuesday trading on the New York Stock Exchange, IBM stock had risen $1 to a new nine-year high of $168 amid expectations that IBM would deliver strong results.
“We showed good growth in the fourth quarter despite a difficult year-over-year comparison, continued weakness in Europe and a greater-than-expected currency impact,” said Chairman and Chief Executive Louis V. Gerstner.
At a Glance:
Lucent Technologies Inc. reported record quarterly profit, rebounding from a year-ago loss amid robust sales of communications equipment. The phone equipment company, spun off by AT&T; Corp. last year, said it earned $859 million, or $1.35 a share, in its first fiscal quarter ended Dec. 31. That contrasts with a loss of $1.02 billion, or $1.60 a share, that Lucent would have reported if it were independent in the year-ago period. . . . NCR Corp., in its first earnings report since being spun off by AT&T;, said it earned a fourth-quarter profit of $7 million, or 7 cents per share, contrasted with a loss of $305 million, or $3.01 per share, in the year-ago quarter.
US Robotics Corp. said its first-quarter earnings rose 66%, slightly below analysts’ forecasts, on strong sales of its modems. The company said net income rose to $69.0 million, or 72 cents a share, from $41.6 million, or 45 cents, in the year-earlier period. Wall Street had expected 73 cents a share.
Johnson & Johnson said its fourth-quarter profit rose 20% to $556 million, or 42 cents per share, compared with $465 million, or 36 cents per share, in the same period last year.
Genentech Inc. said fourth-quarter earnings fell 71% to $7.4 million, or 6 cents a share, from $25.6 million, or 21 cents, in the year-earlier quarter.
Hilton Hotels Corp. lost $68.1 million in the fourth quarter, partly because of a cold streak at the Las Vegas Hilton baccarat tables and little action at Nevada casinos. The fourth-quarter loss of 33 cents per share contrasts with a profit of $63.1 million, or 32 cents, a year ago.
Jefferies Group Inc. reported a 119% increase in fourth-quarter net income to $12.3 million, or $1.07 per share, compared with earnings of $5.6 million, or 47 cents, in the year-ago quarter.
Northwest Airlines Corp. said fourth-quarter profit rose sevenfold, less than analysts expected, to $26 million, or 20 cents a share. That was up from profit from operations of $3.6 million, or minus 10 cents, after payment of preferred stock dividends, in the year-earlier quarter.
Continental Airlines Inc.’s fourth-quarter profit rose 15% to $47 million, or 71 cents a share, up from $41 million, or 63 cents, in the year-ago quarter.
Caterpillar Inc.’s fourth-quarter earnings topped estimates, reporting net income of $381 million, or $1.99 a share, up 27% from $300 million, or $1.53 a share, in the year-ago period and higher than analysts’ average estimate of $1.87.
TRW Inc. said improved air-bag sales helped boost fourth-quarter earnings 11% to $127 million, or 98 cents per share, compared with $115 million, or 85 cents, a year earlier.
Salomon Inc. said it earned $228 million, or $1.98 per share, compared with $168 million, or $1.42 per share, in the year-ago quarter.
Travelers Group Inc. said fourth-quarter earnings jumped 38% to $608.5 million, or 92 cents a share, from $441.7 million, or 66 cents, a year earlier. The increase for Smith Barney’s parent excluded gains from investment sales.
Whirlpool Corp. said its profit more than doubled in the fourth quarter to $45 million, or 60 cents a share, up from $18 million, or 25 cents, in 1995.
Reynolds Metals reported a fourth-quarter loss from operations of $3 million, or 5 cents a share, contrasted with net income of $84 million, or $1.15 a share, in the 1995 quarter.
Alumax said its fourth-quarter profit from operations tumbled 61% to $15.7 million, or 27 cents a share, from $40.2 million, or 84 cents, in the year-earlier quarter.
Burlington Northern Santa Fe Corp. said fourth-quarter profit rose 20%, below analysts’ estimates, to $244 million, or $1.56 a share, up from profit from operations of $203 million, or $1.32, in the year-earlier period.
Illinois Central Corp. reported fourth-quarter profit from operations of $35.4 million, or 53 cents a share, up from $32.4 million, or 52 cents, a year ago.
Advanta Corp. said its fourth-quarter profit rose 20%, fueled by new credit card accounts and an expansion of its mortgage and personal finance business, to $45.2 million, or $1 a share, from $37.6 million, or 85 cents, in the year-ago quarter.
Good Guys reported fiscal first-quarter earnings of $2.0 million, or 15 cents per share, down from $6.7 million, or 50 cents, a year ago.
CalEnergy Co. said its fourth-quarter earnings rose 69% following purchases of power plants in the U.S. and the Philippines and of a British electric company. The power plant builder said net income rose to $21.2 million, or 33 cents a share, from $12.5 million, or 24 cents, in the year-earlier period.
Shoney’s Inc. reported a fourth-quarter profit, its best quarter in a year, and said it will close 55 poorly performing restaurants of its flagship Shoney’s chain. It reported net income of $11.4 million, or 25 cents a share, contrasted with a loss from operations of $11.2 million, or 27 cents, in the year-ago quarter.
Nellcor Puritan Bennett Inc. said profit from operations fell 33% to $12.9 million, or 20 cents a share, from net income of $19.3 million, or 30 cents, in the year-earlier period.
