IBM France SA has reported that net profits plummeted by 60.7% to $145m on revenue that dropped by 2.1% to $6,600m during 1991. The company attributes its dismal figures to the combination of a decline in the price of equipment, company restructuring and an unfavourable economic climate. The domestic market registered the most appreciable decline, down by 6.2% to $3,600m. Exports fell by 3.2% only and now represent 45% of IBM France’s total business. The company says that the costs of financing 2,000 voluntary redundancies affected its 1991 figures, and that that process will continue during 1992. Pierre Barazer, president and managing director of IBM France, blamed customers’ demand for lower pricing for the company’s woes, and says that the industry cannot support such abnormally low prices in the personal computer and mainframe markets for much longer. There were some bright spots, and revenue from services, workstations and AS/400 machines improved during the year.
