IBM backs 2003 expectations for financial growth

Zardon · Nov 14, 2002, 12:24 PM

NEW YORK (REUTERS) - International Business Machines Corp. on Wednesday said it expected to return to financial growth in 2003 as the computer services, hardware and software company cuts costs and takes market share.

At a meeting with industry analysts here, IBM Chief Financial Officer John Joyce called Wall Street estimates for earnings and revenue growth in 2003 as "reasonable."

Joyce said that he expected technology spending to grow as compared with gross domestic product in the long-term but didn't give an outlook for new corporate purchases in 2003. He also declined to comment on the current quarter.

"We think the IT industry will grow faster than GDP over time," Joyce said of spending for information technology during a meeting with analysts in New York on Wednesday.

IBM's growth has been hurt this year by the decline in corporate technology spending that hit certain businesses, such as its microelectronics division, particularly hard.

Analysts see IBM reporting earnings of $4.31 per share in 2003, up from an expected $3.91 per share in 2002. They see 2003 revenue of $87.02 billion, up from an expected $80.7 billion this year, according to Thomson First Call.

Those figures exclude the company's hard disk drive business, which IBM expects to sell by the end of this year.

While Joyce didn't comment on the fourth quarter, IBM's head of technology John Kelly said that he wants the microelectronics division to return to profits in the fourth quarter and to be profitable in 2003.

"In the third-quarter we were very close to profitability," he said, adding that the company is making progress rapidly and targeting profitability for the fourth quarter.

Nov 14, 2002, 12:24 PM	#1
Zardon DriverHeaven Founder Join Date: May 2002 Posts: 32,480 Rep Power: 179	IBM backs 2003 expectations for financial growth NEW YORK (REUTERS) - International Business Machines Corp. on Wednesday said it expected to return to financial growth in 2003 as the computer services, hardware and software company cuts costs and takes market share. At a meeting with industry analysts here, IBM Chief Financial Officer John Joyce called Wall Street estimates for earnings and revenue growth in 2003 as "reasonable." Joyce said that he expected technology spending to grow as compared with gross domestic product in the long-term but didn't give an outlook for new corporate purchases in 2003. He also declined to comment on the current quarter. "We think the IT industry will grow faster than GDP over time," Joyce said of spending for information technology during a meeting with analysts in New York on Wednesday. IBM's growth has been hurt this year by the decline in corporate technology spending that hit certain businesses, such as its microelectronics division, particularly hard. Analysts see IBM reporting earnings of $4.31 per share in 2003, up from an expected $3.91 per share in 2002. They see 2003 revenue of $87.02 billion, up from an expected $80.7 billion this year, according to Thomson First Call. Those figures exclude the company's hard disk drive business, which IBM expects to sell by the end of this year. While Joyce didn't comment on the fourth quarter, IBM's head of technology John Kelly said that he wants the microelectronics division to return to profits in the fourth quarter and to be profitable in 2003. "In the third-quarter we were very close to profitability," he said, adding that the company is making progress rapidly and targeting profitability for the fourth quarter.