GERMAN IBM REPORTS NINE PCT DROP IN TURNOVER IN 1986
IBM Deutschland GmbH <IBM.F>, the
West German subsidiary of International Business Machines Corp
<IBM.N>, said its turnover fell nine pct to 12.0 billion marks
in 1986 as a result of currency factors, weaker demand in the
second half and stiff price competition.
    IBM Deutschland planned to strengthen its software and
service activities in future to ensure growth remained at
desired levels in the medium term, managing board chairman
Hans-Olaf Henkel said. He gave no 1986 profit figures.
    Domestic turnover fell 12.7 pct to 7.2 billion marks while
exports declined 3.2 pct to 4.8 billion.
    Most of IBM Deutschland's exports go to IBM companies in
other countries.
    Henkel said volume sales had been positive overall,
especially in the large computer and personal computer sectors.
However, at the same time, fierce international competition,
worldwide overcapacity and currency movements had reduced large
computer prices for IBM Deutschland by some 23 pct.
    In January Henkel said the annual growth rate of the German
computer market may in the long term be less than 10 pct, well
below the 20 pct expansion originally forecast.
 REUTER
