IBMs second-quarter net income rose by 5% to 1.4bn ($2bn) despite "extremely difficult industry conditions".


Revenues increased by 5% to 15.2bn, with the company also managing to decrease its debt by 1.4bn.


"While others stumbled, we grew revenue, produced record operational profits and increased our market share in almost every one of our business categories," said chairman and chief executive officer Lou Gerstner.


But in the personal and printing systems business segment, unaudited figures for 2001 showed a fall in external revenues of nearly 18% to 2.1bn.


Total income for the segment dropped 17.5% to 2.1bn, with pre-tax income showing a dramatic fall to a 5.6m loss.


During the period, IBM increased revenues from e-business services by 30%, and signed 11bn worth of service contracts.


Gerstner said that although he expected the strength of the dollar to continue to hit the business throughout the second half of the year, the firm was still "uniquely positioned, despite economic conditions".


Story by Andy Scott