Computer chip maker Intel has predicted a 15% slump in first quarter sales, as slowing economic growth holds back demands for personal computers. The prediction came as Intel announced 4th quarter figures showing a 6% rise in revenues to $8.7 billion.
Intel employs 4,400 people at its plant in Leixlip, Co Kildare, and although last night's figures were not particularly impressive, analysts felt it could have been worse.
"The forecast sounds a little ugly, but in esssence it's what Gateway and everyone told you," said one American analyst.
Intel's chief financial officer Andy Bryant said the company would cut costs this year by limiting hiring and discretionary spending. But even as sales slow Intel is boosting its planned capital spend to $7.5 billion this year to develope more effecient manufacuring processes, and have addditional capacity to quickly build chip when demand climbs again.
