IBM revenues fall to $24bn amidst business overhaul

Technology giant IBM operates a North Tyneside base at Cobalt Business Park

IBM
IBM

Computing and technology consultancy firm IBM saw revenues fall 12% to $24.1bn after the sale of its customer care outsourcing and System x businesses.

The global technology giant, which operates a 5,000 sq ft base at North Tyneside’s Cobalt Business Park, said pre-tax income remained flat at $7.1bn in the fourth quarter of 2014.

Ginni Rometty, IBM’s chairman, president and chief executive officer, said the firm was making progress in shifting its focus towards higher value activities.

He said: “We are making significant progress in our transformation, continuing to shift IBM’s business to higher value, and investing and positioning ourselves for the longer term.

“In 2014, we repositioned our hardware portfolio for higher value, maintained a services backlog of $128bn and achieved strong revenue growth across cloud, analytics, mobile, social and security. Together these strategic imperatives grew 16% in 2014 and now represent $25bn and 27% of our revenue.”

Revenues across the firm’s European, Middle Eastern and African operations were down 13% to $8bn, as currency impacted the firm’s earnings.

IBM said it had experienced falling revenues in its server products and storage businesses.

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