IBM Japan Ltd has now done its sums and finds that pre-tax profits for 1991 plunged 33% to the equivalent of $775m, primarily as a result of Japan’s economic slowdown: turnover slumped 4.5% to $9,517m. Declining capital investment by Japanese companies led to slower sales of IBM’s large computers, the company says, but slow sales of IBM’s low-end models and heavy investment in restructuring to focus more on providing services rather than selling hardware added to the woe. We are behind others in introducing low-end models, company spokeswoman June Namioka told Associated Press: We need to promote that area more and become more competitive. We have not put that much effort into the personal computer market until three years ago, but we’re progressing in that area rapidly, she added. She said that salary reductions for top executives at the company, announced in January in response to poor results, would remain in place for the time being.
