Intel profits crash 90% as demand falls

Profits at technology leader Intel crashed 90% in the fourth quarter on weak demand for semiconductors.

Net earnings were $234 million (£160.5 million), down from $2.27 billion a year earlier. Sales fell 23% to $8.2 billion from $10.7 billion.

Intel would not provide a detailed revenue outlook, saying the picture was too uncertain.

But it sees first-quarter revenue "in the vicinity of $7 billion". The bad results came as no surprise and were close to analysts' estimates after two profit warnings from Intel.

"The slowing of the worldwide economy resulted in a weak fourth quarter," said Stacy Smith, Intel's chief financial officer. It was the first time in 20 years that fourth-quarter earnings fell below third-quarter earnings.

Intel says that it is well-positioned for growth when the economy recovers.

"We remain optimistic about where our strategy and execution can take us," said chief executive Paul Otellini. The company hinted that profit margins may return to a "healthy range" by the second half of the year.