IBM &lt;IBM> HAS HIGHER SHIPMENTS, COSTS IN QTR
  International Business Machines
  Corp said shipments and revenues were higher in the first
  quarter, but net earnings fell 22.8 pct in part due to higher
  expenses.
      IBM said net income fell to 785 mln dlrs or 1.30 dlrs a
  share from 1.02 billion dlrs or 1.65 dlrs on about 1.8 pct
  fewer shares outstanding.
      While total sales and income rose 5.5 pct to 10.68 billion
  dlrs from 10.13 billion dlrs, costs and expenses rose 12.1 pct
  to 9.61 billion dlrs from 8.57 billion in the quarter, the
  computer maker said.
      The company said it continues to take actions to make it
  more competitive, including cost and expense reduction
  measures.
      "Although the worldwide economic situation remains
  unsettled, there are some encouraging signs in our business,"
  IBM said in a statement.
      "In addition to the increase in first quarter shipments, we
  have announced new offerings in our large processor and
  personal computing product lines," it said.
      "We have yet to fully benefit from our recent product
  announcements, retirement incentives and other resource
  balancing measures, and we expect these actions will have a
  more significant impact as 1987 progresses," the company added.
      It said it expects more than 12,000 U.S. employees to take
  advantage of the retirement incentives announced last year.
      Pretax earnings fell 27 pct to 1.34 billion dlrs from 1.83
  billion, IBM said. Pretax margins slipped to 12.5 pct in 1987
  from 18.1 pct in 1986, it said.
  

