P.M. BRIEFING : IBM Reports 9.2% Earnings Hike

International Business Machines Corp. said today that its earnings rose to $1.04 billion in the first quarter, a 9.2% rise and a jump of 12.4% in per-share terms, unexpectedly good results that cheered Wall Street.

The world’s No. 1 computer maker cited good demand across its product line. It said first-quarter revenues rose 11.4% to $14.19 billion from $12.73 billion in the year-earlier period.

IBM reported period earnings of $1.81 a share, compared with $950 million or $1.61 a share in the first quarter of 1989. The per-share increase was larger than the overall profits rise due to a decline in the number of outstanding shares.

The improved profits were posted amid a slowdown in the U.S. computer industry.

“Our strategy of listening to our customers and improving the competitiveness of our products and services is working,” said IBM Chairman John Akers in a statement.

Wall Street apparently agreed, as investors rushed in to snap up IBM shares. They were up $3.875 at $111 in early trading on the New York Stock Exchange.