IBM (NYSE: IBM) today announced third-quarter 2012 diluted earnings of
$3.33 per share, a year-to-year increase of 4 percent, or $3.44 per
share, up 8 percent excluding the impact of UK pension-related charges.
Operating (non-GAAP) diluted earnings were $3.62 per share, compared
with operating diluted earnings of $3.28 per share in the third quarter
of 2011, an increase of 10 percent.
Third-quarter net income was $3.8 billion, flat year-to-year; or $3.9
billion, up 3 percent excluding the impact of UK pension-related
charges. Operating (non-GAAP) net income was $4.2 billion compared with
$4.0 billion in the third quarter of 2011, an increase of 5 percent.
Total revenues for the third quarter of 2012 of $24.7 billion were down
5 percent (down 2 percent, adjusting for currency) from the third
quarter of 2011. Currency negatively impacted revenue growth by nearly
$1 billion.
"In the third quarter, we continued to drive margin, profit and earnings
growth through our focus on higher-value businesses, strategic growth
initiatives and productivity," said Ginni Rometty, IBM chairman,
president and chief executive officer.
"Looking ahead, we see good opportunity with a strong product lineup
heading into this quarter and annuity businesses that provide a solid
base of revenue, profit and cash. We are reiterating our full-year 2012
operating earnings per share expectation of at least $15.10."
Third-Quarter GAAP -- Operating (non-GAAP) Reconciliation
Third-quarter operating (non-GAAP) diluted earnings exclude $0.29 per
share of charges: $0.12 per share for the amortization of purchased
intangible assets and other acquisition-related charges, and $0.17 per
share for retirement-related charges, including $0.11 per share for the
impact of UK pension-related charges.
Full-Year 2012 Expectations
IBM is adjusting its expectation for full-year 2012 GAAP diluted
earnings per share to at least $14.29, to reflect the impact of UK
pension-related charges. Operating (non-GAAP) diluted earnings per share
expectations remain at least $15.10. The 2012 operating (non-GAAP)
earnings expectations exclude $0.81 per share of charges for
amortization of purchased intangible assets, other acquisition-related
charges, and retirement-related charges.
Geographic Regions
The Americas' third-quarter revenues were $10.4 billion, a decrease of 4
percent (down 3 percent, adjusting for currency) from the 2011 period.
Revenues from Europe/Middle East/Africa were $7.2 billion, down 9
percent (down 1 percent, adjusting for currency). Asia-Pacific revenues
increased 1 percent (up 2 percent, adjusting for currency) to $6.5
billion. OEM revenues were $538 million, down 28 percent compared with
the 2011 third quarter.
Growth Markets
Revenues from the company's growth markets decreased 1 percent (up 4
percent, adjusting for currency) and 35 countries had double-digit
revenue growth, adjusting for currency. Revenues in the BRIC countries ”
Brazil, Russia,India and China ” increased 4 percent (up 11 percent,
adjusting for currency).
Services
Global Technology Services segment revenues decreased 4 percent (up 1
percent, adjusting for currency) to $9.9 billion. Global Business
Services segment revenues were down 6 percent (down 3 percent, adjusting
