IBM revenue down but net profit and outlook up

US computer giant IBM reported a higher quarterly net profit despite falling sales and delivered a more optimistic outlook for the full year. IBM, which has weathered the global economic slowdown better than most major US corporations, said net profit...

US computer giant IBM reported a higher quarterly net profit despite falling sales and delivered a more optimistic outlook for the full year.

IBM, which has weathered the global economic slowdown better than most major US corporations, said net profit rose 14 per cent to $13.2 billion, or $2.40 per share, better than the $2.38 predicted by analysts.

Revenue fell seven per cent in the third quarter to $23.6 billion compared with the corresponding period a year ago but was one percent higher than the previous quarter, IBM said in a statement.

The company raised its forecast for full-year earnings per share to "at least $9.85 from at least $9.70" on an improved outlook for both software and hardware.

"Our long-term strategic shift to higher-value businesses again enabled us to deliver outstanding margin, earnings and cash flow growth in the third quarter," said IBM chairman, president and chief executive officer Samuel Palmisano.

"We also saw improved revenue trends in our business and share gains in software and hardware," he said.

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