This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-25836875

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
IBM profits better than expectations IBM top executives to forgo bonuses as profits fall
(about 7 hours later)
IBM, the world's biggest computer firm, said fourth quarter profits rose by 6% beating experts' expectations. The chief executive and senior management of IBM, the world's biggest computer-services provider, have said they will forgo their bonuses for 2013.
Higher revenue from software helped net profits to reach $6.19bn (£3.75bn) in the three months to the end of December. The move comes as the firm reported a 5% drop in sales and 1% decline in net profit for 2013, from a year ago.
Net income for the whole year was down by 1% to $16.5bn. Its performance was dented by falling profits in emerging economies - where a slowdown in economic growth in recent years has hurt demand.
IBM's chief executive, Virginia Rometty, said she and her fellow executives would skip their bonus payments this year. Revenues from these markets fell 9% from a year earlier.
She said: "While we made solid progress in businesses that are powering our future, in view of the company's overall full year results, my senior team and I have recommended that we forgo our personal annual incentive payments for 2013." The big drop came from the so-called Bric countries - Brazil, Russia, India and China - where sales declined by 14% during the year.
The company's performance was dented by falling profits in formerly fast-growing emerging markets, whose growth has faltered in recent years. "While we made solid progress in businesses that are powering our future, in view of the company's overall full year results, my senior team and I have recommended that we forgo our personal annual incentive payments for 2013," Ginni Rometty, chief executive of IBM, said in a statement.
Revenues from these markets fell by 9%, with the Bric countries - Brazil, Russia, India and China - seeing revenues drop by 14%. 'Continue to transform'
Cloud expansion However, the firm reported better-than-expected results for the October-to-December quarter.
Earlier on Tuesday, shares in China's Lenovo - the world's biggest PC maker - rose 3.5% after reports that it was in talks to buy IBM's low-end server business. It made a net profit of $6.19bn (£3.75bn) during the period, a 6% jump from a year ago, boosted by higher revenue from software sales.
IBM recently said it would invest more than $1.2bn (£735m) expanding its data centres and cloud storage business, building 15 new centres. The firm said it expected its operating profit for 2014 to rise by more than 10% as it looks at new avenues for growth.
"We will continue to transform our business and invest aggressively in the areas that will drive growth and higher value," Ms Rometty said.
IBM recently said it would invest more than $1.2bn (£735m) expanding its data centres and cloud-storage business, building 15 new centres.
That would bring the total number up to 40 during 2014.That would bring the total number up to 40 during 2014.
Businesses are increasingly leasing data storage, computing power and web hosting services from a growing number of specialist cloud companies - effectively outsourcing their IT needs to cut costs and improve efficiency. Businesses are increasingly leasing data storage, computing power and web-hosting services from a growing number of specialist cloud companies - effectively outsourcing their IT needs to cut costs and improve efficiency.
IBM believes the cloud services market could be worth $200bn by 2020. IBM expects the cloud-services market could be worth $200bn by 2020. It said it had added 2,400 new clients since it acquired Dallas-based SoftLayer.
IBM says it has added 2,400 new clients since it acquired Dallas-based SoftLayer.