DOW JONES 90-DAY NEWS/RETRIEVAL Int'l News & Research Services
Sequence Number : 2491 Story Date : 98/08/31
2 12:29 T Intel Vice Pres Sees Earnings Recovery In 2H98 - Nikkei
TOKYO (Nikkei)--Intel Corp. (INTC) forecasts higher earnings for the latter
half of the year, Sean Maloney, Intel's vice president and co-director of sales
and marketing, said here Monday.
In an interview with The Nihon Keizai Shimbun that was published Tuesday
morning, Maloney said he expects excess North American inventories of personal
computers - the main reason for Intel's falling profit - to be eliminated.
Intel, the world's dominant producer of the microprocessors that are the core
component of PCs, saw its consolidated profit drop by over 30% in the first
half of the year.
Maloney also maintained that weak sentiment on the New York Stock Exchange
won't directly affect PC sales in North America, the world's largest market for
PCs. Growth in Internet connections is rapid, he explained, and there is no
sign that corporate investment in information technology will fall.
PC sales remain sluggish in Asia, including in Japan, while the company
expects sales in North America and Europe to remain robust. Worldwide, sales
will increase 13-14% on the year, Maloney predicts.
Under its management strategy, Intel sees the development of PCs designed for
easy Internet access as the key to its growth.
Maloney said Intel sees China as an important focus of its regional strategy.
(END) DOW JONES NEWS 08-31-98
12:29 PM
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