The results were much sunnier than those posted by Google Inc and Microsoft Corp, which both missed analysts’ targets, with the software maker citing a tough U.S. economy and Google blaming expenses for foreign currency hedges.
IBM Chief Financial Officer Mark Loughridge told a conference call U.S. business grew in the quarter, the weak dollar helped IBM and that currency hedges would help it mitigate any strengthening of the dollar next year. It was difficult not to say IBM was ahead on reaching its 2010 profit target, he concluded.
… IBM gets about two-thirds of its revenue from outside the United States.
Source: “IBM profit tops targets, forecast up” from Reuters, Jul 17 2008, emphasis added.