BUSINESS

Intel's second-quarter earnings fall 4.3 per cent, warns that economy will hold back growth

07/17/2012 04:27 EDT | Updated 09/16/2012 05:12 EDT
NEW YORK, N.Y. - Intel Corp., the world's largest chipmaker, said Tuesday that the weak global economy is slowing its growth, and revenue for the current quarter is likely to come in below Wall Street forecasts.

Intel's second-quarter net income was US$2.83 billion, or 54 cents per share. That was down 4.3 per cent from $2.95 billion, or 54 cents per share, a year earlier, as operating expenses rose faster than revenue. Intel has been buying back shares, accounting for the flat earnings per share.

Analysts polled by FactSet were expecting earnings of 52 cents per share for the latest quarter.

Revenue rose 3.6 per cent to $13.5 billion. Analysts were expecting $13.54 billion.

The Santa Clara, California, company says it expects $13.8 billion to $14.8 billion in third-quarter revenue, with a midpoint of $14.3 billion, below the analyst forecast of $14.6 billion.

"As we enter the third quarter, our growth will be slower than we anticipated due to a more challenging macroeconomic environment," CEO Paul Otellini said in a statement.

After the release of results, Intel's stock fell 8 cents to $25.30 in extended trading. During the regular session, it gained 25 cents, or 1 per cent, to close at $25.38.