IBM To Increase Spending on Acquisitions Through 2015
Operating earnings will jump to at least $20 a share by 2015 from $11.35 or more this year, helped by cost savings and software demand,” Palmisano said in a meeting with investors in New York today.
In the eight years since Palmisano took over, he’s spent roughly $20 billion on 100 purchases. The new plan signals an interesting uptick in a seemingly aggressive existing plan. This is an interesting strategy overall. Amid the recession, he bought back shares and cut quite a few jobs.
Well, investers seemed to like what he had to say. “IBM, based in Armonk, New York, climbed $4.46, or 3.5 percent, to $131.35 at 12:27 p.m. in New York Stock Exchange composite trading. It earlier rose as high as $131.75 for the biggest intraday gain since July 17. The world’s largest computer-services provider’s shares had fallen 3.1 percent this year before today.”