IBM to meet profit forecast despite turmoil

IBM, the biggest technology services company, said it expects to meet long-term profit forecasts despite economic turmoil, partly…

IBM, the biggest technology services company, said it expects to meet long-term profit forecasts despite economic turmoil, partly due to continued growth in emerging markets.

The company also said it had good access to funds, a strong liquidity position, and $10 billion in cash - unchanged from June - on top of its $10 billion revolving credit facility.

IBM, the world's biggest maker of mainframe computers, made the comments yesterday while releasing quarterly results that confirmed preliminary figures released last week.

IBM shares rose 2.4 per cent in after-market trade.

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The company posted a higher-than-expected third-quarter profit and reaffirmed its full-year outlook despite weaker quarterly revenue due to a stronger dollar.

Chief financial officer Mark Loughridge said that IBM is not among the group of large corporations suffering from liquidity problems. He added that the business outlook remains strong.

"We think we have shown real momentum," he said of the results for the third quarter ended Sept 30. "We are confident as we go into the fourth quarter and 2009."

IBM did not issue a profit forecast for next year, but it reiterated its outlook for 2008. Mr Loughridge said the company remains on track to meet its goal of boosting profit to between $10 and $11 a share by 2010, despite the weakening economy.