Computer giant IBM says its first-quarter earnings have fallen due to reorganisation costs. Source: AAP
IBM says its first-quarter earnings have fallen because of a large charge related to reorganising its work force. Revenue has fallen amid an ongoing decline in its hardware business.
IBM Corp on Wednesday said it earned $US2.38 billion ($A2.55 billion), or $US2.29 per share, in the January-March period. That's down 21 per cent from $US3.03 billion, or $US2.70 per share, a year earlier. Adjusted earnings were $US2.54 per share, matching analysts' expectations.
Revenue fell four per cent to $US22.5 billion. Analysts polled by FactSet were expecting $US22.9 billion.
For the full year, IBM expects adjusted earnings of at least $US18 per share. That's higher than estimates of $US17.88.
IBM said a year ago that it would spend $US1 billion to reshuffle the types of jobs it needs. That includes layoffs, although IBM hasn't said how many.
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