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

To: StanX Long who wrote (58806)	1/15/2002 4:04:10 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

01/15 03:11 Intel CEO Barrett Readies Plants, Processors for Demand Rebound By Cesca Antonelli quote.bloomberg.com Santa Clara, California, Jan. 15 (Bloomberg) -- Intel Corp. Chief Executive Officer Craig Barrett has stepped up spending on manufacturing capacity in the face of the biggest slump in the semiconductor industry's history. By adding and modernizing plants now, when most rivals don't have the money, he hopes to bolster earnings at the largest chipmaker and win business from competitors when personal-computer sales rebound. Barrett, taking advantage of Intel's heft, invested a record $7.5 billion on new equipment and factories last year to try and avoid mistakes made in the last slowdown in 1998. When the PC market recovered the next year, Intel lost sales to Advanced Micro Devices Inc. amid chip shortages and recalls. ``That's the cost of staying on top,'' said Jim Luke, who manages the $210 million BB&T Large Company Growth Fund, which owns 190,000 Intel shares. Later today, analysts expect the Santa Clara, California- based company to report that fourth-quarter sales slid 21 percent to $6.84 billion and earnings fell to 11 cents a share excluding some costs, according to Thomson Financial/First Call. A year earlier, Intel had net income of 32 cents on $8.7 billion in sales. Investors, anticipating that new chips will boost profits in 2002, have pushed the stock up 74 percent since Oct. 1. The shares reached a record high of $75.81 in August 2000. Intel rose 29 cents yesterday to $34.84. Fourth Quarter Analysts say there are some signs of a recovery in the chip market after 13 months of declining demand.