IBM has announced a 97% fall in profits in Q2. The company posted profits of $56 million for the quarter ended June 30 compared with profits of $2 billion for Q2 in 2001. Revenues also fell to $20 billion from $20.8 billion a year ago. IBM has blamed the fall in profits on the reorganization of its chip making operations and the large number of job losses recently announced by the company.
IBM’s chief financial officer John Joyce said that IBM was especially affected by the slump in purchasing by technology and telecommunications companies. Joyce went on to say that IBM’s losses were partly offset by a boost in the sales of data back up and emergency preparedness services to customers such as government departments.