With one week to go before the end of the accounting period, IBM Japan’s turnover for 1986 was expected to be much lower than the 17.8% growth rate anticipated (to reach revenues of one trillion yen, $6,100m). The shortfall is is being blamed on the sudden decline in local manufacturing industry in the second half of the year due to the strong yen. Sales of the Sierra 3090 and the 5550 Japanese Personal Computer, particularly to the financial and distribution industries were good in the first half of the year, but they slowed subsequently as steel makers and electrical goods makers deferred their hardware purchases. Exports from IBM Japan’s factories to other Far East markets also declined.
