IBM profit well up

Press, 26 July 1983, Page 24

IBM profit well up

NZPA-Reuter New York IBM, the world’s premier computer company, has reported a substantial rise in profits, but analysts were divided about whether the results showed the dataprocessing industry as a whole to be regaining its strength. IBM reported from its headquarters in Armonk, New York, that profits in the second quarter of this year amounted to SUSI. 34 billion, compared with SUSI.OB billion in the corresponding period of last year. “The earnings were above all expectations on Wall Street,” said Mr Harry Edelson, of the First Boston investment firm. The latest quarter was the fifth con-

secutive one in which IBM reported growth of more than 20 per cent, he added. “IBM has been acting as a bell-wether for the economy and the results are a good sign that the economy is coming around and that the computer industry is regaining its health,” he said.

The figures also indicated that an economic recovery was taking place internationally, as half of IBM sales were made outside the United States.

“We were expecting very good results and IBM delivered as expected,” said Mr James Meyer, an analyst with the Philadelphia investment firm, of Janney Montgomery Scott. But he said the numbers should not be too broadly interpreted.