IBM Corp declined to comment to Reuter yesterday on a Salomon Brothers analyst’s report on the company that mentions the likelihood of more restructuring charges and a further dividend cut: Salomon’s John Jones said it is possible IBM could announce on July 27 another $4,000m to $5,000m in restructuring charges and that he believes there is a 60% chance of a further cut in its dividend; although we have been saying for months that IBM’s plan to cut 25,000 jobs this year would be nowhere near enough to put the company back on an even keel, the possibility of bigger cuts is still not reflected in the share price; Jones also cited costs associated with the company’s financing that involved the sale of $1,100m in preferred stock and $1,800m of debt in raising his 1993 loss estimate to $0.62 a share from $0.50, and cut his 1994 profit outlook to $1.80 a share from $2.00; the shares were off $1.375 to $50.625.
