Gerstner to step down as IBM chief

NEWS Lou Gerstner is to step down as chairman and CEO of IBM after nine years at the helm. Gerstner, who joined the company from food giant Nabisco, is not expected to make an official announcement until early next year. But the Sunday Business reports that "close colleagues" have been informed of his decision. Sam Palmisano, IBM's current chief operating officer, is tipped to take over the hot seat. He's been with the company for 25 years and, along with Gerstner, has been credited with driving through a strategy which has seen IBM remain insulated from the worst of the high-tech industry slump. This strategy has in the main been focused on creating a successful services operation. IBM hit targets for both profit and turnover for the second quarter of 2001. It made a profit of $2bn, up from $1.9bn for the same period last year. IBM services revenue was up 15 per cent and brought in $16bn in new business during the quarter. Hardware and software revenues were both down five per cent compared to the corresponding quarter last year. Meanwhile, Microsoft founder Bill Gates and his wife, Melinda, have been honoured for supporting the development of vaccines, news.com reports. They were awarded an International Union of Immunological Societies' prize on Sunday to recognise the work carried out by a foundation set-up by the couple, which has played an important role "in the development and distribution of vaccines against major infectious diseases that threaten mankind".