The company attributes the earnings growth to better cost controls and a lower tax rate.
IBM has reported a 12% increase in net income to $4.42 billion for the fourth quarter 2008, compared to $3.95 billion in the year-ago quarter, on revenue down 6% at $27 billion.
During the quarter income from continuing operations grew 12% to $4.4 billion, while diluted EPS grew 17% to $3.28. OEM revenue fell 31% to $615m.
IBM said technology services revenue fell 4% to $9.62 billion, while business services revenue fell 5% to $4.7 billion. Systems and technology revenue fell 20% to 5.42 billion, while software revenue grew 3% to $6.42 billion. Global financing revenue fell 1% to $660m, while revenue from others fell 20% to $169m.
Geographically, Americas revenue fell 2% to $11.5 billion, EMEA fell 12% to $9.5 billion, and Asia Pacific revenue fell 1% to $5.5 billion.
For fiscal 2008, the company reported a 18% increase in net income to $12.33 billion compared to net income of $10.41 billion a year ago, on revenue up 5% at $103.63 billion.
IBM chairman, president, and chief executive, Sam Palmisano, said: In 2008 IBM performed well in an extremely difficult economic environment. Clearly our strategic transformation, migrating to the more profitable segments of the industry, investing in growth regions of the world, and driving productivity through global integration is continuing to pay dividends. We are confident about 2009, based on our 2008 performance, we are ahead of pace on our roadmap for $10 to $11 per share.