Micron says third-quarter production above forecast
Tuesday June 10, 12:38 pm ET
(Adds detail, background, stock activity)
NEW YORK, June 10 (Reuters) - Chip maker Micron Technology Inc. (NYSE:MU - News) on Tuesday said its fiscal third-quarter production is running slightly ahead of forecast levels.
Micron spokesman Kipp Bedard, speaking at a Bear Stearns investors conference here, said the No. 2 maker of computer memory chips also sees its fiscal 2003 capital expenditures above expectations.
"We are coming in a little bit better," he said, noting that the figure would likely be around $1.1 billion, up $100 million from previous views.
In addition, Micron said PC makers are seeing a smaller-than-expected drop in unit shipments.
"Our customers went into the calendar second quarter thinking that their shipment of (computer) boxes would be down in the high-single digits," he said. "More recently they have indicated to us (the decline) may be more mid-single-digits."
Bedard added that the Boise, Idaho, company also has cut more costs in the quarter than it had expected, particularly in administrative areas, and lowered spending on research and development.
Micron announced a restructuring plan earlier this year that includes shutting down an operation in Virginia, discontinuing certain product lines and a 10 percent reduction in work force, or 1,800 employees.
Moreover, he said business in Asia has stabilized after being shaken up in recent months by the deadly SARS virus and the U.S.-led war in Iraq.
Shares of Micron rose to $13.05, up 74 cents, or about 6 percent on the New York Stock Exchange (News - Websites). It is one of the most active issues of the day on the NYSE.
biz.yahoo.com
Don do you think the analysts purposely pump up expectations early in the year and then slam technology stocks with downgrades during the summer and early fall?
Setting up the old sell in May theory for yet another year.
I think they do.
RtS |
