IBM 1999 Annual Report Download - page 9

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financial highlights
International Business Machines Corporation
and Subsidiary Companies
(Dollars in millions except per share amounts) 1999 1998
FOR THE YEAR:
Revenue $87,548 $ 81,667
Income before income taxes $ 11,757 $9,040
Income taxes $4,045 $2,712
Net income $7,712 $ 6,328
Earnings per share of common stock—assuming dilution $4.12 $ 3.29*
Earnings per share of common stock—basic $4.25 $3.38*
Cash dividends paid on common stock $859 $ 814
Per share of common stock $.47 $ .43*
Investment in plant, rental machines and other property $5,959 $ 6,520
Average number of common shares outstanding (in millions)
Assuming dilution 1,871 1,920*
Basic 1,809 1,869*
AT YEAR END:
Total assets $87,495 $86,100
Net investment in plant, rental machines and other property $17,590 $ 19,631
Working capital $3,577 $ 5,533
Total debt $ 28,354 $ 29,413
Stockholders’ equity $ 20,511 $ 19,433
Number of employees in IBM / wholly owned subsidiaries 307,401 291,067
Number of common stock holders 646,702 616,800
*Adjusted to reflect a two-for-one split of the common stock effective May 10, 1999
This year I’d like to mention three other important
developments (actually, they are more like new
realities) that are now taking hold:
>Up to now, the primary impact of e-business has
been on individual companies. Now the Internet
is reinventing entire markets – you might say,
the very idea of a market. A few years ago, search
engines took off because people needed help
finding information on the Web. Then, as e-commerce
exploded, search engines morphed into portals,
which helped people find not just information but
also products and services.
Last year we began seeing entirely new business
life-forms – companies that function not like
traditional companies, because they don’t make or
sell anything themselves, but very much like markets.
They help buyers find and qualify sellers. We call
these “e-marketplaces” and “e-exchanges,” and we
already see them facilitating business-to-business
number of acquisitions
’95 ’96 ’97 ’98 ’99
07
10
18
12
15
17