IBM Earnings Up 39 Percent; Apple Up 5.3 Percent
The Associated Press
Jul. 18, 1989
Undated (AP) _ International Business Machines Corp. today reported a 39 percent increase in its second-quarter profit largely because of one-time factors, while Apple Computer Inc. said its profit rose 5.3 percent in the latest period.
IBM's profit increase was unusually large because its results in the year- earlier comparison period were depressed by a one-time $600 million charge to cover the cost of cuts in manufacturing and headquarters operations.
IBM's results were in line with analysts' expectations. The company said sales were growing across its product line, from personal computers to mainframes.
Armonk, N.Y.-based IBM said it earned $1.34 billion in the quarter, or $2.31 a share, in comparison with earnings of $964 million, or $1.63 a share, a year earlier. Revenue rose 9.4 percent to $15.2 billion from $13.9 billion.
For the first six months of the year, IBM said its earnings rose 3.5 percent to $2.29 billion, or $3.92 a share, from $2.21 billion, or $3.73 a share, a year earlier. Revenue rose 7.6 percent to $27.9 billion from $26 billion.
Apple, the Cupertino, Calif.-based personal computer maker, said its earnings in its third fiscal quarter ended June 30 rose to $96.1 billion, or 74 cents a share, from $91.3 million, or 71 cents a share, a year earlier. Revenue rose to $1.25 billion from $993 million a year earlier.
For the first nine months, Apple said its earnings rose less than 1 percent to $293 million, or $2.28 a share, from $292 million, or $2.24 a share, a year earlier. Revenue rose to $3.9 billion from $2.9 billion.
Apple said it continued to be hurt by higher component costs, especially for memory chips, which it bought when they were at their highest price.