Intel, which employs 4,400 people in Leixlip, Co Kildare, has reported a 9 per cent drop in fourth-quarter net profits compared with the previous three months.
As the world's largest maker of computer chips reported revenues of $8.7 billion (#8.9 billion), about the same as in the previous period, it warned that revenues in the first three months of this year would be 15 per cent weaker "given the high level of economic uncertainty".
It attributed this to seasonal factors and slower economies throughout the world.
Net profits, excluding acquisition-related costs, were $2.6 billion in the three months to December 25th, 9 per cent weaker than in July-September period. They rose 10 per cent year-on-year.
Excluding acquisitions, fourth quarter earning were $0.38 per share, down 7 per cent on the previous three months.
The group previously predicted revenues 4-8 per cent stronger than the $8.7 billion generated in the third quarter, but warned on December 7th that sales would be flat. Its year-end revenues were $33.7 billion, 15 per cent stronger than in 1999. Net income excluding acquisition costs was $12.1 billion for 2000, 49 per cent stronger than the $8.1 billion generated in 1990.
In December, it said fourth-quarter revenues would be lower than anticipated, prompting large cancellations by customers.
Ahead of the results, Intel shares lost 2.14 per cent to close on $31.37-1/2 on the tech-heavy Nasdaq exchange last night. The shares were worth more than $70 last September.
This was before a downturn throughout the tech sector when a slew of firms issued profit warnings, citing falling demand for personal computers.
Because Intel chips are used as standard technology by IT firms, the group is seen as a proxy for the sector.
On Monday, Intel had said it would spend $748 million buying Xircom Inc, a maker of mobile computing gear. The acquisition will complement its line of desktop computer components, it said.
The group has delayed a $2 billion expansion at Leixlip by at least six months. That followed a decision to change the production process at the plant.
