Intel CEO Reiterates Capital Expenditure
Thursday April 26 10:08 AM ET
NEW YORK (Reuters) - Intel Corp (Nasdaq:INTC - news) Chief Executive Craig Barrett said on Thursday that his company, the world's largest chipmaker, still plans to spend $7.5 billion in capital spending this year, as well as $4.2 billion on research and development.
``We reiterate again today we're going to spend $7.5 billion,'' Barrett told reporters at a breakfast ahead of the company's analyst meeting here.
Many analysts have expressed increasing skepticism that Intel would indeed spend the full forecasted amount, given a downturn in demand for personal computers and a slowing U.S. economy. Barrett's comments dispelled those concerns.
Also, Santa Clara, Calif.-based Intel continues to see a ''seasonal uptick'' in the second half of the year, head of sales Michael Splinter said. He was reiterating comments made by the company's Chief Financial Officer Andy Bryant last week when the company reported first-quarter net income that dropped 82 percent.
``There are indications now showing that we are at the bottom of the trough,'' he said. Inventories among its customers, PC makers, are now back at historical levels, Splinter said -- following a buildup in the fourth quarter.
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