P.M. BRIEFING : IBM’s Earnings Tumble 74%

International Business Machines Corp. today announced that its fourth-quarter earnings fell 74%, largely because of previously announced restructuring costs aimed at making the world’s biggest computer company more profitable.

IBM said earnings for the three months ended Dec. 31 totaled $600 million, or $1.04 a share, compared to $2.3 billion, or $3.97 a share, a year earlier. Fourth-quarter revenue totaled $20.5 billion, up 2.3% from $20 billion.

The company attributed the decline mostly to a previously announced $2.4-billion charge against its fourth-quarter results to reflect the expenses of restructuring its U.S. business, which has been in a prolonged slump.

IBM’s earnings are scrutinized because they reflect broader trends in the computer business. The company is the largest manufacturer of of information processing equipment and systems and is a historical leader in shaping the direction of the industry.

For the year, IBM said earnings fell 40% to $3.8 billion, or $6.47 a share, from $5.8 billion, or $6.47 a share, in 1988. Revenue totaled $62.7 billion, up 5.1% from $59.7 billion.