IBM <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.