“Corporate profits came roaring back in 2003. The economy, hesitant and unsure of itself in the first half, ultimately gained the self-confidence it needed to get moving and shifted into high gear. The result was dazzling: Profits for the 900 companies on BusinessWeek’s Corporate Scoreboard rose 76% from the year before, with fourth-quarter earnings up by 322%,” BusinessWeek reports.
“The big resurgence in capital spending lifted tech companies sharply, as corporations began investing again in information technology. Earnings for the computer industry soared 210%. Apple Computer Inc. (AAPL) recorded the largest increase for the group, a 552% jump in annual profits to $137 million, thanks to strong sales of its computers and the iPod. IBM’s (IBM ) yearly profit increased 43%, to $7.6 billion, on the strength of consulting services and software sales. And hardware sales accelerated sharply in the fourth quarter. IBM Chief Financial Officer John. R. Joyce recently told investors that ‘2004 is the year when the IT industry will begin its next growth cycle,'” BusinessWeek reports.
Full article here.