Strong Overseas Growth Buoys IBM Sales

Despite a lagging US economy, there's hope for multinational tech firms overseas
By Jim O'Neill,  Newser User
Posted Jan 18, 2008 9:17 AM CST
The IBM booth is shown at the National Retail Federation convention on Tuesday, Jan. 15, 2008 in New York. IBM releases a quarterly earnings report on Thursday, Jan. 17. (AP Photo/Mark Lennihan)   (Associated Press)
camera-icon View 3 more images

(Newser) – IBM, already weathering the economic storm that’s bedeviled many other major US companies, said sales overseas, especially in Europe and developing nations, would help it overcome trying economic conditions at home in 2008, reports the Wall Street Journal. The computer services giant said it expects annual per share earnings between $8.20 and $8.30, more than analysts had projected.

Yesterday, IBM reported solid fourth quarter-growth in Europe, where sales rose 16%; revenue growth in Asia grew 15%, while US growth was a lackluster 2%, the company said. IBM earned 63% of its revenue outside the US, up from 61% a year ago, potentially good news for other multinational tech companies struggling with US sales.