IBM Quarter Earnings Drop 27%

IBM, the world’s largest computer maker and the nation’s most profitable company, today reported that its net earnings dropped 27%, or $397 million, in the third quarter as world shipments and orders declined.

Earnings per share were $1.76, compared to $2.40 last year. Analysts said the decline in the worldwide business has shut off the last remaining growth avenue for IBM, whose U.S. business had been deteriorating since early last year.