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Business Briefs

Reported by Star-Bulletin staff & wire

Tuesday, October 17, 2000

Intel earnings beat lowered expectations

SAN FRANCISCO -- Intel Corp. reported third-quarter earnings today that topped diminished expectations as flagging sales in Europe cut into revenue at the world's largest chipmaker.

After the stock market closed today, the Santa Clara, Calif.-based company said net income before acquisition-related charges rose 52 percent to $2.9 billion, or 41 cents a share, from $1.90 billion or 27 cents, a year ago. The results topped consensus analyst forecasts for earnings of 38 cents a share.

Sales rose 19 percent to $8.73 billion from $7.33 billion and 5 percent from the second quarter, less than analysts were expecting before Intel issued its sales warning Sept. 24.

IBM's net climbs but sales disappoint

NEW YORK -- International Business Machines Corp. said today that its third-quarter profit met expectations, but the world's largest computer maker's sales fell below what analysts had hoped for, even as the company posted sales growth for the first time in a year. The Armonk, N.Y.-based company reported third-quarter net income of $2.0 billion, up 17 percent from $1.70 billion. Per-share earnings were up about 20 percent to $1.08 a share vs. 90 cents a year ago, excluding certain one-time gains. That met analysts' consensus estimate of $1.08 per share, as compiled by First Call/Thomson Financial.

Sales rose 3 percent to $21.8 billion, missing analysts' forecasts for sales of $22.4 billion. A weak euro hurt sales growth by reducing the total amount of revenue when converted back into dollars. Without the currency effect, sales would have risen 6 percent, IBM said. In the third quarter of last year, IBM reported sales of $21.14 billion.

In other news . . .

Bullet NEW YORK -- Shares of America Online Inc. sank to a 52-week low amid investors' jitters that the Internet giant may not be immune to the softening in advertising spending that has afflicted the industry. The stock fell $9.01 to close at $43.60, a 17 percent drop. Concerns about AOL dragged merger partner Time Warner Inc.'s shares down $12.24 to $65.56.

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