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IBM capitalized on emerging market growth, with revenue in so-called "growth markets" gaining 13%, adjusted for currency impacts.
The company, which had warned of negative currency impacts in February, said net profit fell by 13.0%, to $2.0 billion, better than the expected drop to $1.9 billion, according to a Reuters poll.
Alcoa was the first Dow Jones industrial average component to report earnings Thursday, and the aluminum producer earnings beat expectations as higher volume helped offset lower prices and negative currency impacts.
Prudential said that as Alcan's price has approached the research firm's $50 target, it too has been exposed to the same rising currency impacts on costs of sales as Alcoa.
Today, IBM reported currency impacts that were in the fractions of percentage points in different divisions, but the company counts the U.K. as one of its important international markets, and it's forecasting that currency declines, for example in the U.K. pound, will impact them in quarters ahead.
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"They beat the revenue consensus, despite the really negative currency impact".
"If you adjust for currency impact, the profits were up 12percentt.
But in sales alone, the currency impact added $310 million in the quarter.
The currency impact of the euro crisis has been uneven in an increasingly volatile market.
Yet with so much of I.B.M.'s business abroad, analysts try to model the currency impact into their financial forecasts.
Sterling's recent weakness against the euro is good for ABF, which reduced its estimate of currency impact for this year to £10m from £25m, he added.
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