IBM said yesterday that quarterly earnings rose for the first time in almost two years, helped by cost cuts and the closure of some old chip-making facilities.

The New York-based firm, which sells everything from computer services to giant mainframes to software, reported first-quarter net income of 79 cents per share, up from 68 cents per share a year earlier.

IBM, like many technology companies, cut approximately 15,000 jobs last year. It also closed down some of its older chip-making facilities as it faced an extended downturn in corporate spending.

The company has more than 4,000 employees at its Irish operations.

IBM said income from continuing operations, which excludes the hard disk drive business it sold at the end of 2002, rose to $1.4 billion(€1.3 billion), compared with $1.3 billion, a year earlier.

IBM said revenues increased to $20.1 billion, up from $18 billion a year earlier. IBM shares rose $1.32, or 1.7 per cent, to close at $80.07 yesterday. - (Reuters)