IBM CEO Says Boosting Margins More Crucial Than Sales Growth
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IBM sees boosting profit margins as more important than sales growth, Chief Executive Officer Ginni Rometty said today, holding firm to her strategy after a disappointing quarter sent shares tumbling.
Investors aren’t getting much expansion on either front. Earlier this week, Rometty’s technology company reported a 10th consecutive quarter of sales declines, and its operating gross profit margin dropped 0.9 percentage point from a year earlier to 49.2 percent. Operating earnings per share will slide 2 percent to 4 percent this year, the Armonk, New York-based company said.