US computer giant IBM has beaten analysts' forecasts with a reported $3.5 billion profit in the fourth quarter, bringing its full-year 2006 earnings to $9.5 billion.
The profit in the October-December quarter was 11% higher than a year ago and translated to $2.26 per share, compared with forecasts of $2.19. Revenues for IBM increased 7% to $26.2 billion. For the full year, profits rose 19% on revenues of $91.4 billion, a gain of just 0.3%.
IBM results were lifted by its division producing software for business management, which saw revenues of $5.6 billion in the past quarter, an increase of 14%. IBM's services arm reported a 7% revenue gain to $8.6 billion. Revenue in its computer systems was up 3% to $7.1 billion. In May 2005, IBM sold its personal computer unit to Chinese group Lenovo for $1.75 billion.
