The tech group is faced with growing risks in the currency markets.
(Photo: Reuters)
Armonk The computer group IBM significantly increased sales in the second quarter thanks to strong demand for cloud software and IT services. In the three months to the end of June, revenues increased by nine percent compared to the same period last year to $ 15.5 billion, as IBM announced on Monday after the US stock market closed.
Net income increased to $1.4 billion from $1.3 billion. However, exchange rate effects weigh heavily on the balance sheet. IBM suffers from strong dollar, which reduces foreign earnings after conversion to US currency. Without this negative factor, the increase in sales in the most recent quarter would have been 16 percent.
In view of increased geopolitical risks such as the war in Ukraine, investors are targeting the US dollar as a so-called safe haven on the financial market. In addition, the US Federal Reserve is well ahead of the European Central Bank in its rate hike cycle.