IBM profits surge despite economy

IBM is one of the technology industry's main bellwether stocks

Computer giant IBM has reported a 26% rise in first-quarter profits despite fears of a faltering US economy.

Net income rose to $2.32bn (�1.18bn) in the first three months of 2008 from $1.84bn in the same quarter a year earlier.

IBM's US business performed well despite the problems facing many of the firm's financial sector clients.

Revenue was also boosted by weakness in the US dollar, which inflates the value of overseas sales.

Revenue grew 11% to $24.5bn, beating analysts' expectations.

IBM said its revenue would have risen just 4% if not for currency gains.

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