By Daniel Hunter

US technology giant IBM reported a fall in profits and revenue for the fourth quarter as it ditched unprofitable businesses.

Profits in the final quarter of 2014 were down 11% to $5.5bn, compared with the same period last year. And revenue fell by almost 12% to $24.1bn (£15.9bn).

IBM said its figures were hurt by a strong US dollar and its decision to move away from hardware, instead focusing on higher margin operations.

In October, IBM said it would pay $1.5bn to sell its chip-making division to Global Foundries.

"We are making significant progress in our transformation, continuing to shift IBM's business to higher value, and investing and positioning ourselves for the longer term," said chief executive Ginni Rometty in a statement on Tuesday.

Shares were down 1.8% after the news. IBM's shares have fallen by 17% over the past year.

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