IBM’s net income falls 17% in second quarter

IBM’s net income falls 17% in second quarterComputing giant, International Business Machine Corp has said that its net income has fallen 17 per cent during the second quarter of the year as it had to absorb the cost of laying off its workers.

The company said that its total net income for the second quarter was recorded at $US3.23 billion or $US2.91 compared to $US3.88 billion, or $US3.34 per share during the same quarter of the previous year. The company's adjusted earnings excluding a $US1 billion charge of layoff, was recorded at $US3.91 per share, which is higher than $US3.77 per share expected by analysts polled by FactSet.

The The Armonk, New York company was able to beat second-quarter earnings estimates due to mainframe and software units but recorded lower revenues. The total revenues of the company fell 3 per cent to $US24.92 billion as the company recorded a fall in hardware sales.

"In the first half, we've had strength in Latin America and the Middle East and Africa region, but declines in some of our larger markets like China and Australia have impacted the overall performance. As we look at the second half. We have some very, very distinct tailwinds," said Chief Financial Officer Mark Loughridge.