IBM shares rise on results news

IBM's first-quarter 2001 revenues totaled $21.0bn, driven by their IT services division. The company claims that its increasing emphasis on services leaves it better placed than most rivals to deal with an economic downturn.

Louis Gerstner, IBM chairman and CEO, said in a statement: "Many in our industry have gotten a bit carried away over the last few years by the exaggerated expectations for the internet world. During that same period, we have remained totally focused on two things: building the world's most powerful services company and creating real technology breakthroughs."

Revenues from IBM Global Services, including maintenance, grew 18 per cent at constant currency prices in the first quarter, to $8.5bn. Global Services revenues, excluding maintenance, increased 21 per cent. Revenues from ebusiness services increased more than 40 per cent. IBM signed $10.2bn in services contracts.

IBM said it is not immune to possible effects of cutbacks in consumer spending, but Gerstner said: "Times like these play to our strengths as a diversified, services-led company."

By Nik Hole