IBM has reported that net income from continuing operations for the 12 months ended 31 December 2014 was $15,8-billion, compared with $16,9-billion in the year-ago period – a decrease of 7%.
Diluted earnings per share from continuing operations were $15.59, up 2% compared to the 2013 period.
The consolidated diluted earnings per share were $11.90 as compared to $14.94 per share in 2013, down 20%. Revenues from continuing operations for the twelve-month period totalled $92,8-billion, a decrease of 6% (down 1%, adjusting for divested businesses and currency) compared with $98,4-billion for the twelve months of 2013.
Full year results include a non-recurring pre-tax charge of $4,7-billion, or $3,4-billion, net of tax. The charge includes an impairment to reflect fair value less estimated costs to sell the Microelectronics manufacturing business assets, which the company has classified as held for sale at 31 December 2014.
The charge also includes other estimated costs related to the transaction, including cash consideration expected to be transferred to GlobalFoundries of approximately $1,5-billion.
Operating (non-GAAP) net income from continuing operations for the 12 months ended December 31, 2014 was $16,7-billion compared with $18,4-billion in the year-ago period, a decrease of 9%. Operating (non-GAAP) diluted earnings per share from continuing operations were $16.53 compared with $16.64 per diluted share for the 2013 period, a decrease of less than 1%.
The company announced fourth-quarter 2014 diluted earnings from continuing operations of $5.54 per share, compared with diluted earnings of $5.76 per share in the fourth-quarter of 2013, a decrease of 4%. Operating (non-GAAP) diluted earnings from continuing operations were $5.81 per share compared with operating diluted earnings of $6.16 per share in the fourth-quarter of 2013, a decrease of 6%.
Fourth-quarter net income from continuing operations was $5,5-billion compared with $6,2-billion in the fourth-quarter of 2013, a decrease of 11%. Operating (non-GAAP) net income from continuing operations was $5,8-billion, as compared with $6,6-billion in the fourth-quarter of 2013, a decrease of 13%.
For the fourth-quarter of 2014, IBM reported consolidated net income of $5,5-billion or $5.51 of diluted earnings per share, including operating net losses in discontinued operations related to the microelectronics manufacturing business.
Total revenues from continuing operations for the fourth-quarter of 2014 of $24,1-billion were down 12% (down 2%, adjusting for the impact of the divested customer care outsourcing and System x businesses and for currency) from the fourth-quarter of 2013 and were down 1% for the full year 2014, adjusting for the impact of the divested businesses and for currency.
“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,” says Ginni Rometty, IBM chairman, president and CEO.
“In 2014, we repositioned our hardware portfolio for higher value, maintained a services backlog of $128-billion and achieved strong revenue growth across cloud, analytics, mobile, social and security. Together these strategic imperatives grew 16% in 2014 and now represent $25-billion and 27% of our revenue.”
