News
IBM's 1999 Year-End Results
Net income for the year ending December 31, 1999 was $7.7 billion, or $4.12 per diluted common share, compared with net income of $6.3 billion, or $3.29 per diluted common share, in 1998. Revenues in 1999 totaled $87.5 billion, an increase of 7 percent as reported and in constant currency, versus revenues of $81.7 billion the previous year.
IBM's full-year 1999 results include an after-tax benefit of $750 million, or $.40 per diluted common share, resulting from several actions that occurred in the year. Specifically, IBM sold its Global Network to AT&T. The company completed several acquisitions which resulted in charges for acquired in-process research and development; took actions intended to improve the long-term competitiveness of the company; and shortened the depreciable lives of personal computers.
In the Americas, full-year revenues were $38.8 billion, up 5 percent (7 percent at constant currency) from the 1998 period. Revenues from Europe/Middle East/Africa were $25.7 billion, an increase of 2 percent (6 percent at constant currency). Asia-Pacific revenues grew 19 percent (8 percent at constant currency) to $15.2 billion. OEM revenues increased 15 percent (14 percent at constant currency) to $7.8 billion.
Hardware revenues in 1999 were $37.0 billion, an increase of 5 percent (4 percent in constant currency). Global Services revenues totaled $32.2 billion, an increase of 11 percent (11 percent at constant currency). Software revenues totaled $12.7 billion, an increase of 7 percent (8 percent at constant currency). Global Financing revenues totaled $3.1 billion, an increase of 9 percent (10 percent at constant currency). Revenues from the Enterprise Investments/Other area declined 2 percent (1 percent at constant currency) year over year to $2.5 billion.
Common share repurchases totaled approximately $7.3 billion in 1999. The average number of basic common shares outstanding was 1.81 billion in 1999, compared with 1.87 billion in 1998. There were 1.78 billion basic common shares outstanding at the end of the year.
The company's debt in support of operations, excluding global financing, decreased $104 million from year-end 1998 to $1.6 billion at year-end 1999, resulting in a debt-to-capitalization ratio of 9 percent. Global financing debt declined $1 billion from year-end 1998 to $26.8 billion at year-end 1999, resulting in a debt-to-equity ratio of 5.5 to 1.