IBM profits up slightly in third quarter

International Business Machines Corp. reported a small gain in third-quarter profits Monday, as increasing revenues in almost every area of the business, including emerging markets such as Russia and China, helped offset expenses from a pension lawsuit.

For the three months ending Sept. 30, IBM earned $1.80 billion, or $1.06 per share, compared to $1.79 billion, or $1.02 a share, at the same time a year ago.

Excluding a charge of $320 million, or 11 cents a diluted share, related to a pension lawsuit filed by retirees, the company earned $2 billion, or $1.17 per share. Analysts surveyed by Thomson First Call had predicted $1.14 per share.

• Kraft Foods Inc., the nation’s largest food manufacturer, posted a 4 percent decline in third-quarter profits Monday on increased marketing spending and higher commodity costs.

Net earnings for the July-through-September quarter were $779 million, or 46 cents a share, down from $810 million, or 47 cents a share, for the same period a year ago.

That was a penny higher than the consensus estimate of analysts surveyed by Thomson First Call, who have been watching for a promised second-half recovery as Kraft revamps its product offerings and moves to become more diet-conscious.

• Mattel Inc., the world’s biggest toy maker, said Monday its third-quarter profits fell 5.2 percent due to lower worldwide sales of its flagship Barbie doll line and its Hot Wheels and Matchbox toy car brands.

The El Segundo-based company reported net income of $255.9 million, or 61 cents a share, in the July-September quarter, down from $270 million, or 61 cents a share, last year.

Mattel said worldwide net sales for the quarter were $1.67 billion, down 2 percent from $1.70 billion in the same period last year.