BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
    You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
 Tuesday, 14 January, 2003, 23:49 GMT
Intel boosts tech mood
An Intel plant
Intel is seen as the bellwether of the tech sector
Chip-maker Intel sparked optimism in the technology industry this week, reporting earnings above Wall Street estimates.

But the upbeat mood was short-lived as analysts noted the company's reduced spending forecasts and suggested this spelt bad news for the semiconductor market, of which Intel is the biggest supplier.

The US group reported earnings in the final three months of last year of more of $1bn (620m), more than double those in the same period of 2001.

Profits for 2002 as a whole were up 144% on the depressed levels of the year before.

However, Intel cautioned that 2003 would be an unpredictable year.

"Continuing uncertainty in global economic conditions makes it particularly difficult to predict product demand and other related matters," said Intel chief executive Craig Barrett.

Sector barometer

I think it's actually a good thing that they're throttling back spending

Douglas Lee, Banc of America Securities

Intel makes chips and other components for computers, so is closely watched as an indicator of how the technology sector as a whole will fare.

The company hinted at good news in October, when Mr Barrett said he expected conditions for the sector to improve during 2003.

But in its latest statement, Intel warned that capital spending would fall in 2003, from $4.7bn (3bn) in 2002 to around $3.9bn this year.

However, the group said the average price for its microprocessors was still rising - a positive sign anticipated by analysts as a sign that pricier laptops and servers are dominating sales.

"Europe was strong, the US was a little bit stronger," said Intel's chief financial officer Andy Byrant.

Growth in Europe was boosted by a good performance in emerging markets, particularly Russia, John Woodget, Intel's Europe marketing manager told BBC World Service Radio.

Intel shares were almost unchanged in after hours trading, at $17.80.

"I think it's actually a good thing that they're throttling back spending," said Douglas Lee at Banc of America Securities.

"It means they're focused on their own return on invested capital."

  WATCH/LISTEN
  ON THIS STORY
  The BBC's Shu Ling
"It is the increasing appetite of the Asia consumer for new technology which is keeping profits bouyant"
  Andy Bryant, Intel Chief Financial Officer
"It was a pleasant end to a tough year"
  John Woodget, Intel's Europe marketing manager
"We saw strength in Europe"
See also:

05 Dec 02 | Business
16 Nov 02 | Technology
06 Oct 02 | Business
16 Jul 02 | Business
03 Oct 02 | Business
19 Jun 02 | Business
19 Jun 02 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


 E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes