IBM earnings up 10 percent, helped by weak dollar

By PETER SVENSSON

IBM Corp. on Tuesday reported stronger-than-expected net income and revenue for the first quarter, helped by the weak dollar and strong performance in the U.S. and emerging markets.

IBM also raised its full-year forecast for operating earnings.

Net income rose 10 percent to $2.86 billion, or $2.31 per share. In the year-ago period, IBM earned $2.6 billion, or $1.97 per share.

Excluding mostly acquisition-related charges, earnings were $2.41 per share, beating the average analyst estimate as polled by FactSet of $2.29.

Revenue rose 8 percent to $24.6 billion. Analysts expected $24.02 billion. The increase would have been 5 percent at a constant currency, IBM said.

IBM said it expects full-year operating earnings of "at least" $13.15 per share, up from an earlier forecast of $13.

In extended trading, after the release of the results, IBM shares were down $2.65, or 1.6 percent, at $162.75. The shares are close to their all-time high of $167.72.

Hardware sales did particularly well, rising 16 percent at constant-currency rates from last year. In the largest segment, Technology Services, revenue rose just 3 percent.

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