IBM falls to five-year low as profit forecast misses estimates

New York

IBM fell to the lowest price in more than five years on Wednesday after its 2016 profit forecast fell short, underscoring the company's struggle to offset a persistent decline in its traditional hardware, software and technology services business.

IBM tumbled 4.9 per cent to US$121.86 at the close in New York, the lowest price since July 2010. It was the biggest drag on the Dow Jones Industrial Average, which fell 1.6 per cent on Wednesday.