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IBM Profit Rises 36% on Boost in Services Revenue

October 16, 2003|From Bloomberg News

IBM Corp., the world's biggest computer maker, said Wednesday that third-quarter profit rose 36%, helped by a 17% gain in services sales and the falling dollar. IBM will add 10,000 jobs next year.

Net income increased to $1.79 billion, or $1.02 a share, from $1.31 billion, or 76 cents, in the year-ago period, Armonk, N.Y.-based IBM said. Revenue rose 8.6% to $21.52 billion from $19.82 billion a year ago.

Corporate spending on information technology now appears to be accelerating and the economy has stabilized, IBM Chief Executive Sam Palmisano said.

"Although it is too early to say that a rebound is at hand, we are confident that we will benefit from both a pickup in IT spending and an economic recovery," Palmisano said.

New workers will be hired in the U.S. and elsewhere, spokesman Joseph Stunkard said.

IBM's revenue from services increased to $10.4 billion, while software sales rose 11% to $3.5 billion. The falling U.S. dollar accounted for almost half of the sales increase, IBM said.

IBM shares rose 2 cents to $92.74 on the New York Stock Exchange and fell to $90.20 after the report in after-hours trading.

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