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Tuesday, 16 October, 2001, 21:02 GMT 22:02 UK
Big Blue sees profits slide
PCs at Hanover's CeBit fair
IBM has been hit by the effects of the strong dollar
The computer giant IBM suffered a near 19% fall in net profits during July, August and September as computer sales slumped.

Net profits fell from just under $2bn a year earlier to below $1.6bn while sales slipped 6% to $20.43bn.

"The third quarter saw an acceleration of the fundamental shift in customer buying behaviour that is altering our industry's landscape," chairman and chief executive Louis Gerstner said in a statement.

"Customers now allocate an increasing percentage of their spending to solutions, not boxes."

Earnings from PC sales and other hardware earnings fell during the third quarter, hit by tough price competition and weak markets.

But services and software earnings rose.

In after-hours trading, shares in the company gained $2.35 to $104.20. The stock slipped back 15 cents during the day's trading on New York Stock Exchange.

See also:

16 Oct 01 | Business
Intel profits tumble
18 Jul 01 | Business
IBM profits rise
18 Jun 01 | dot life
Fifty years of computers
05 Oct 01 | Business
Dell moves ahead in PC battle
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