Printer Friendly

IBM STATEMENT ON ACTION BY MOODY'S INVESTORS SERVICE

       IBM STATEMENT ON ACTION BY MOODY'S INVESTORS SERVICE
    ARMONK, N.Y., Dec. 12 /PRNewswire/ -- International Business Machines Corporation is disappointed about Moody's decision.  We made steady progress in improving our financial results through 1990; our 1991 results have been adversely affected by weak worldwide economic conditions, competitive pressures and transitions within our product line.
    IBM has taken significant actions that will result in improved financial performance and provide consistent earnings momentum.  For example, that portion of our revenue that is less subject to year-to- year fluctuations -- software, rentals, financing and services -- has grown significantly from 32 percent of our total revenue in 1985 to 45 percent of our revenue through the first nine months of 1991.  We believe this adds another layer of financial stability to our results.
    IBM continues to maintain a strong balance sheet and provide sufficient cash flows to cover interest obligations and dividend payments.  We believe that the impact of Moody's action on our worldwide financing requirements will be minimal.  We are confident that our industry remains an attractive investment and of our ability to achieve an 18 percent return on equity within the next three years or so.
    -0-       12/12/91
    /CONTACT:  Rob Wilson of IBM, 914-765-6565/
    (IBM) CO:  International Business Machines Corporation ST:  New York IN: SU: SM -- NY090 -- 2116 12/12/91 16:35 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 12, 1991
Words:223
Previous Article:CORNING SELLS INTEREST IN CORNING ASAHI DE MEXICO
Next Article:CENTRAL OHIO IS FIRST IN STATE TO RECYCLE DRINK BOXES AND MILK CARTONS


Related Articles
DETROIT MAYOR YOUNG RELEASES STATEMENT ON MOODY'S INVESTORS SERVICE GENERAL OBLIGATION BOND RATING
MOODY'S PLACES 'Aaa' RATINGS ON IBM TAX-EXEMPT GRANTOR TRUST CERTIFICATES UNDER REVIEW FOR POSSIBLE DOWNGRADE
IBM STATEMENT ON ACTION BY MOODY'S INVESTORS SERVICE
MOODY'S CONFIRMS 'Aaa' RATINGS ON IBM TAX EXEMPT GRANTOR TRUST CERTIFICATES; CASH COLLATERAL SUBSTITUTED FOR GUARANTEE
MOODY'S RELEASES POLICY STATEMENT ON AIRPORT PASSENGER FACILITY CHARGES; 'STAND ALONE' PFC DEBT UNLIKELY TO ACHIEVE INVESTMENT GRADE RATING
DETROIT MAYOR COLEMAN A. YOUNG RESPONDS TO BOND RATING ISSUED BY MOODY'S INVESTORS SERVICE
XEROX RESPONDS TO RATING ACTIONS ISSUED BY MOODY'S
Saudi Businessmen & Bankers Dismiss Moody's Warnings.
Kmart Corporation Comments on Moody's Upgrade.
UnumProvident Issues Comment on Moody's Rating Action.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters