Big blue in the pink

Second quarter net profits at IBM are up 22 percent, partly as a result of the ailing economy and the weakness of the US dollar.  ┬á Total revenues for the quarter ending 30 June 2008 increased 12.8 percent to $26.8 billion from the second quarter of 2007, although the company said this would be only six percent after currency adjustments. Net income was $2.77 billion, up 22.3 percent from $2.26 billion a year ago.┬á┬á ÔÇ£IBM had an outstanding quarter and a strong first half for 2008. These results demonstrate that IBM has the ability to thrive in both emerging and established markets. Once again, IBMers performed very well around the world," said Samuel J. Palmisano, IBM chairman, president and chief executive officer. "We are continuing to see the benefits of IBM's transformation in recent years. Today IBM is a company with a distinctive business model that gives us a competitive edge in a global economy.ÔÇØ┬á┬á  IBM's business grew consistently in all of its regions around the world when factoring in the effects of a weak dollar. Growth in the Americas was up six percent at constant currency while Europe was up seven percent and Asia Pacific up six percent. Emerging markets were up 14 percent with growth of 20 percent in Brazil, Russia, India and China.┬á┬á On the home front, with many businesses struggling, IT solutions seem to be gaining popularity. "In this environment, our customers are looking for ways to save cost, conserve capital and manage risk," said Mark Loughridge, senior vice president and chief financial officer.┬á┬á Loughridge said IBM's strategy in the current economic environment is to sell its cost-saving potential in established markets like the United States and Europe.┬á┬á "This is one of the best quarters I've ever seen, and remember we delivered an outstanding second quarter a year ago. So these are truly powerful results," said Loughridge.┬á┬á IBM is raising its 2008 earnings per share projection by 25 cents to $8.75, which is at least 22 percent higher than in 2007. Since the beginning of the year, IBM has raised its outlook for 2008 by 85 cents. Loughridge also affirmed IBM's goal of yearly earnings per share of $10 to $11 by 2010.┬á┬á Read IBMÔÇÖs earnings statement in full here.  ┬á┬á┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *