My first post dealt with some wise financial maneuvering by IBM. At that time, IBM was freezing its pension plan, reducing the growth of these onerous, but underappreciated employee benefits. I marvelled at the lack of an outcry.
IBM again showed its prowess in the fourth quarter results. Although IBM's fourth-quarter revenue came in a little shy of expectations, falling 6.4 percent from a year ago, the company also managed to cut costs by 3-4 percent. A lower tax rate also helped.
IBM is dealing with the reality of a top-line challenged world (read excess capacity) by reallocating efforts to top line growth (managers become sales people), outsourcing non-selling functions and controlling tax costs. Look for other companies to follow, if they're smart.
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