US semiconductor giant Intel revised its full-year forecast for sales and profits downward on the 28th, reflecting sluggish demand for semiconductors installed in personal computers. Second quarter economic consequences were more down than predicted.
Stock prices fell 10% in after-hours trading after closing.
Intel expects full-year sales of $ 65-68 billion. Previously it was $ 76 billion. Adjusted earnings are also expected to be $ 2.30 per share, down from the previous outlook of $ 3.60.
In addition, sales in the third quarter are expected to reach $ 15-16 billion due to the rapid and rapid decline in economic activity. It was below the expected average of $ 18.62 billion compiled by Refinitiv.
In addition to lower spending on personal computers compared to the new coronavirus, demand has fallen further due to corona behavior restrictions in China, which is the main personal computer market, and the disruption of the supply network due to the Ukrainian War.
Second-quarter sales were down 22% to $ 15.3 billion. Sales declined for the seventh straight quarter, below the expected $ 17.92 billion.
The client computing group (CCG), which contributes the most to sales, reported sales of $ 7.7 billion, down 25%.
Adjusted earnings per share are $ 0.29. It was below the expected $ 0.70.
Pat Gelsinger, the CEO, said of the second quarter financial results, "The economic changes have been more severe, causing not only changes in consumption but also dramatic movements in the inventory status of major customers." Showed the view.
Ryan Reese, an analyst at market research firm IDC, said, "Intel is very dependent not only on the data center but also on the personal computer industry. Also, orders for OEM (contract manufacturing) are slowing in the second half of 2010. ".
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