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IBM growth flat in third quarter

New York: Revenues in IBM's consulting business were flat after currency adjustment in its third quarter of 2011.

For the firm as a whole, third-quarter net income was $3.8 billion, up 7 percent, on total revenues of $26.2 billion, an increase of 8 percent, or 3 percent, adjusting for currency.

"In the third quarter, we drove revenue growth, margin expansion and increased earnings as a result of our innovation-based strategy and continued investment in growth initiatives," said Samuel J. Palmisano, IBM chairman, president and chief executive officer. "Growth markets delivered outstanding revenue performance across software, hardware, and services and contributed to the company's expanded margins. We also achieved strong results in Smarter Planet, business analytics and cloud.

Total revenues from Europe/Middle East/Africa were $8.0 billion, up 9 percent (flat, adjusting for currency).

Revenues from what IBM calls its growth markets increased 19 percent (13 percent, adjusting for currency). Revenues in the BRIC countries -- Brazil, Russia, India and China -- increased 17 percent (13 percent, adjusting for currency). Growth markets revenue represents 23 percent of IBM's total geographic revenue for the third quarter.

Total Global Services revenues increased 8 percent (2 percent, adjusting for currency). Global Technology Services segment revenues increased 9 percent (3 percent, adjusting for currency) to $10.3 billion. Global Business Services segment revenues were up 6 percent (flat, adjusting for currency) at $4.8 billion.

Total Global Services pre-tax income increased to $2.5 billion, up 13 percent year over year. Pre-tax income from both Global Technology Services and Global Business Services also increased 13 percent.

Net income for the nine months ended September 30 was $10.4 billion, up 8 percent on total revenues of $77.4 billion, an increase of 9 percent (4 percent, adjusting for currency).

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