IBM sales, profit up

IBM Corp., the world’s largest computer maker, said first- quarter sales and profit rose as companies bought more machines, software and related services. Net income was $1.6 billion, or 93 cents a share, IBM said. Sales rose to $22.3 billion. Analysts expected $21.9 billion in sales, the average of 19 estimates in a Thomson Financial survey. Chief Executive Sam Palmisano has boosted IBM’s sales by buying software and services companies to make up for slowing growth in computer-hardware sales. The New York-based company’s purchase of PricewaterhouseCoopers LLP’s business- consulting unit in 2002 is starting to pay off, investors say.

Citigroup profit rises

Citigroup Inc., the world’s largest financial-services company, said earnings rose to a quarterly record of $5.27 billion, boosted by higher fees on credit cards, loans to consumers and share sales. First-quarter net income increased 29 percent to $1.01 a share, from $4.1 billion, or 79 cents, a year earlier, the New York-based company said. The profit was the highest among U.S. companies that have reported earnings so far this year. Citigroup is boosting earnings at it’s investment banking unit as more companies sell and trade stock. Citigroup also benefited from rising consumer borrowing, which fueled a 37 percent jump in credit-card profit.

State bond sales

California plans to sell as much as $7 billion of bonds in early May, starting Governor Arnold Schwarzenegger’s deficit finance plan a month ahead of schedule to capture lower borrowing costs, the state treasurer said. The state will follow with another $5 billion to $6 billion debt sale by mid-June, Treasurer Phil Angelides said. California planned to start the sales in June before U.S. Treasury note yields, an interest rate benchmark, began climbing last month. Treasury note yields remain near their highest in three months, as investors speculate that an acceleration in inflation and the quickening pace of the economy will cause the Federal Reserve to raise borrowing costs sooner than anticipated.

Manufacturing jobs

Manufacturing surged more than expected in the Philadelphia and New York regions this month as companies increased hiring to keep up with orders, Federal Reserve surveys showed. The Fed Bank of Philadelphia’s April general economic index rose to 32.5, the highest since January, from 24.2 in March and a similar measure from the New York Fed climbed to 36.1 from 25.3. Readings exceeding zero mean most companies said that business improved. Both regions said a majority of businesses were hiring.

Apple shares high

Apple Computer Inc. shares rose to their highest since 2000 after fiscal second-quarter iPod music-player shipments exceeded estimates, and the company said this quarter’s profit and sales will top analysts’ forecasts. The maker of Macintosh computers increased $2.19 to $28.83 at 11:23 a.m. New York time in Nasdaq Stock Market composite trading. The stock rose as high as to $29.58, or 11 percent. The stock has jumped 35 percent this year, beating Hewlett- Packard Co.’s 4.5 percent decline and Dell Inc.’s 3.9 percent growth.BLOOMBERG NEWS SERVICE

Nokia slipping behind competitors

Ville Harju has bought four Nokia Oyj mobile phones in the past six years. Last month, he chose a model from Sony Ericsson Mobile Communications Ltd. that he said was cooler and easier to use. “Nokia used to be the smallest and sleekest, and I didn’t even look at other brands,” said Harju, 28, a manager at Elisa Oyj, a Helsinki- based telecommunications company. “Now, they’ve been surpassed on looks and usability.” Such consumer sentiment may cost Nokia its leadership of the $86 billion global handset market, said Per Lindberg, an analyst at Dresdner Kleinwort Wasserstein. The Finland- based company’s first-quarter sales unexpectedly fell as rivals such as Siemens AG, Samsung Electronics Co. and LG Electronics Inc. gained market share — a trend that will continue, Lindberg said.