IBM loses 1,071 million in nine months compared to 2021 profit

By: Dan Cooper

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IBM announced on Wednesday that it has lost 1,071 million dollars between January and September compared to the benefit of 3,410 million registered in that period of 2021 after recently noting a multimillion-dollar payment related to the pension plans of its staff.

The U.S. technology company announced in September that it had agreed to pay $5.9 billion for the transfer of pension plans for about 100,000 employees to two insurers, an administrative issue that has weighed on the company’s accounts in the third and final quarter.

IBM reported its results in a statement in which it stressed the good performance of the business, which continues to grow thanks to the adoption of the computing cloud, and noted that in the first nine months of the year revenues amounted to 43,840 million, almost 8% more year-on-year.

In the third quarter, IBM lost $3.196 billion versus $1.13 billion earned in that stretch of 2021 due to the impact of the transfer of pension plans, but operating profit excluding that charge stood at $1.7 billion.

Between July and September, revenues increased by 6.5% year-on-year, to 14,107 million, especially thanks to its software segment, which accounted for most of its sales with 5,800 million, although the strong growth of its infrastructure segment stood out.

The infrastructure segment earned $3.4 billion, up 15 percent, driven by the sale of its new IBM z Systems line of computers, which rose 88 percent.

The company, which a year ago got rid of its infrastructure management services business, now called Kyndryl, has bought two companies, Dialexa and, during this last quarter, although it has not disclosed the cost.

The results, released after the Wall Street close, beat analysts’ expectations and IBM shares soared 4.5% in electronic trading.

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