International Business Machines Corp. posted a 26% jump in first-quarter profit, supporting investors' hopes that corporate spending, especially overseas, may be a bulwark against the deteriorating U.S. economic picture.
IBM reported net income of $2.32 billion, or $1.65 a share, up from $1.84 billion, or $1.21 a share, a year earlier. Per-share earnings rose by 36% because IBM has been buying in its shares aggressively to reduce the number of shares outstanding.
Coupled with Tuesday's bullish outlook from semiconductor giant Intel Corp., IBM's results and profit forecast appeared to show that some technology companies are so far escaping fallout from the U.S. subprime mortgage crisis and the subsequent consumer slowdown.
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