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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: advocatedevil who wrote (49985)	7/31/2001 1:57:31 PM
From: Shoibal Datta	Read Replies (4) \| Respond to of 70976

Applied Materials 2001, 2002 estimates cut - Gerard Klauer Mattison SAN FRANCISCO (AFX) - Applied Materials Inc's sales and earnings estimate for this year and next were cut by analysts at Gerard Klauer Mattison, who now expect worldwide semiconductor capital equipment spending to fall 27 pct in 2001 and 17 pct in 2002. "Due to ongoing low utilisation rates and a slower-than-expected rebound in the semiconductor market, we believe the capital equipment industry will not start to pick up until 2003," they said. Previously, the analysts had anticipated capital equipment spending to fall 26 pct this year and rise 4.5 pct next year. The analysts cut their 2001 earnings per share estimate for Applied Materials to 1.05 usd from 1.07, while slashing their outlook for next year's earnings to 85 cents a share from 1.13 usd previously. They now see sales for the full year at 7.19 bln usd, down from 7.24 bln, while they anticipate 2002 sales of 7.2 bln usd, down sharply from a previously-estimated 8.2 bln. The analysts reiterated a 'neutral' stance on Applied Materials stock and said the company's "current share price appropriately reflects demand expectations for semiconductor capital equipment over the next twelve to eighteen months. "(We) do not believe the stock will move higher until the capital equipment market starts to see signs of a recovery in late 2002 or 2003," the analysts said. At 1.43 pm in New York trade, the shares traded 0.61 usd higher at 47.20. The Philadelphia semiconductor (Sox) index gained 13.14 pts to 618.74 and the Nasdaq composite added 33.96 pts to 2,051.80. mtp/lj Copyright 2001 AFX News Ltd.