IBM Corp set Wall Street back on its heels yesterday morning as it warned that as a result of that convenient scapegoat, the Gulf War, and the economic slowdown around the world, its first quarter figures would be below analysts’ expectations of $1.65 to $1.95 a share – and after the company’s statement, analysts said that IBM was guiding them towards flat turnover and net profit of only 90 cents a share against $1.81 a year ago. IBM told analysts its performance has been worst in countries where the economies were weakest, citing the US, the UK, Canada, Australia and New Zealand as the worst. It said it was also suffering in Italy and France and has sees some slowdown in Japan and Germany was the only major economy where IBM did not cite weakness. News that a warning was on the way saw the Dow Jones index fall 28 points in early trading, and IBM and DEC both opened late. Before trading started the indication was for $12 plunge in the share price to around $116, but in the event the shares opened only $3 off at $125. But fear soon reasserted itself over greed and by 12.35pm New York time, IBM was off $10.25 at $118.5; DEC off $4 at $72.5, the market as a whole was off 52.
