IBM, which is investing £150 million in a plant in Blanchardstown which will employ 2,850 people, has reported higher fourth quarter profits, bolstered by its strong services and software sales.

The world's largest computer maker said net income rose about 18 per cent to $2.02 billion in the quarter from $1.71 billion in the 1995 quarter. Revenues were up 6 per cent, to $23.1 billion, from $21.9 billion a year ago.

Earnings per share rose to $3.93 from $3.09, since IBM had 7 per cent fewer shares outstanding in the quarter due to stock buybacks. Wall Street analysts had expected profits of $3.88 a share on average, according to First Call, which tracks earnings estimates.