IBM 2016 Profit Shows Struggle to Move Past Old Operations
IBM’s forecast for 2016 profit shows the company continues to struggle as a shift to new technologies hasn’t yet offset a persistent slump in demand for its traditional hardware, software and information technology business.
International Business Machines Corp. is in the midst of a multiyear transition that has weighed on the stock.
Chief Executive Officer Ginni Rometty is working to drive growth by focusing on newer operations, including cloud computing and data analytics, trying to counter investor concerns about revenue by emphasizing that the new businesses are higher in value and more profitable.
While sales of the new services, bundled together under the heading “strategic imperatives,” increased 16 percent to $28.9 billion in 2015, the company forecast profit this year far below analysts’ projections.
International Business Machines Corp. is in the midst of a multiyear transition that has weighed on the stock.
Chief Executive Officer Ginni Rometty is working to drive growth by focusing on newer operations, including cloud computing and data analytics, trying to counter investor concerns about revenue by emphasizing that the new businesses are higher in value and more profitable.
While sales of the new services, bundled together under the heading “strategic imperatives,” increased 16 percent to $28.9 billion in 2015, the company forecast profit this year far below analysts’ projections.
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