US technology giant International Business Machines reported on Thursday a higher net profit for the third quarter, in spite of plunging sales.

IBM's net income jumped 14 per cent from previous year to settle at $3.2 billion. It earned $2.40 per share, beating estimates of earning of $2.38 per share.

However, company also suffered a fall of 7 per cent in sales to $23.6 billion. Analysts had projected a drop of $23.4 billion in sales.

IBM's North American region faced a decline of 5 per cent in sales, while sales fell 12 per cent in Europe, Africa and the Middle East.

After reporting stronger-than-expected earnings, the IT giant lifted its 2009 outlook. The company lifted its forecast for full-year earnings from 9.70 dollars per share to 9.85 dollars per share.

During the after-hour trading, shares in IBM fell 5 per cent.