IMPROVED efficiency and cost management have contributed to a 63 per cent increase in pretax profits at IBM Ireland. The Irish division of the US computer giant said pre-tax profits grew from £4.9 million to £8 million, while turnover increased slightly to £68.4 million.
"It was the best all-round year in the history of the company," said IBM Ireland's managing director, Mr William Burgess. The improved performance, achieved despite a particularly competitive market, helped create 50 new jobs at IBM Ireland last year, according to Mr Burgess. Another 50 staff are to be added this year.
IBM, which is one of the few US companies to give a detailed breakdown of its performance in Ireland, employs 500 regular and contract staff while its sister company Lotus employs 450 people in the Republic. The IBM results, which relate only to business in the Republic, do not include a contribution from the recently acquired Lotus.
IBM Ireland's operating profit grew from £3.8 million to £6.1 million while after-tax profits increased to a record £5.7 million. Exports account for 21 per cent of turnover.
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