IBM Reports 7% Drop in Profits

NEW YORK — International Business Machines Corp., citing continued softness in the economy, said today that its third-quarter profits fell 7% from a year earlier despite a 9.8% rise in revenue.

The world’s largest computer maker said net income dropped to $1.47 billion, or $2.40 a share, from the $1.59 billion, or $2.60 a share, that had been posted in the July-September quarter of 1984. Revenue climbed to $11.7 billion from $10.7 billion. It was the third consecutive quarter in which earnings have been down for IBM.