Intel sees quarterly profits rise

Intel, the world's biggest computer chipmaker, has reported a 12% rise in its quarterly earnings.

Profits for the three months to 27 September were $2bn (£1.1bn) compared with $1.7bn for the same period last year, said the company.

But Intel warned that the financial crisis made it hard to predict its earnings for the rest of the year.

The announcement came after US markets closed - but Intel shares rose 4.5% in after-hours trading.

Intel said it expected its earnings in the fourth quarter of 2008 would be $10.5bn - a little less than Wall Street had been hoping for.

Mixed outlook

Analysts said the outlook for Intel was better than many had hoped against the backdrop of a global financial crisis.

"It is hard to know what impact the financial crisis will have on customer demand"
Paul Otellini
Intel chief executive

"These are numbers that if you have to be somewhere with a slower future, this may not be a bad place to be," said Mike Holland, fund manager at Holland & Co.

Intel said the average selling price for its microprocessors dropped as sales rose of its Atom chip.

The Atom is used in new smaller mobile computers - and Intel's profit margins on the chip are lower than on previous computer chips.

Paul Otellini, Intel's chief executive, said the outlook for the rest of the year was mixed.

"It is hard to know what impact the financial crisis will have on customer demand," he said.

But he added he was confident Intel would be able to outpace its competitors even though "business levels are difficult to predict".

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