Intel Forecasts Double-Digit Growth in Profit, Sales

Intel Corp. Chief Executive Officer Paul Otellini said he’ll deliver “good news” on profit margins at an analyst meeting later today and forecast double-digit revenue and earnings per-share growth in the next few years.

Otellini, who declined to give more details on his forecasts, said that the personal computer market is “still a growth industry that may expand as much as 16 percent in the next four years, he said.

Intel, whose chips run more than 80 percent of the world’s PCs, will sell more semiconductors for server computers, data centers and mobile phones, and offer new processors for other products including televisions and security systems, Otellini said. The company’s ability to manufacture more advanced chips cheaply is putting it further ahead of the competition, he said.

“We’ve set ourselves up for very profitable growth,” Otellini said in remarks to analysts at the company’s Santa Clara, California, headquarters. “Intel has a unique set of attributes that no one has.”

Intel, the world’s largest computer-chip maker, fell 27 cents, or 1.2 percent, to $22.28 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares have gained 9.2 percent this year.

Separately, the company is “highly confident” in the forecasts it gave for the second quarter, Thomas Kilroy, Intel’s head of sales, said in a presentation after Otellini. Some areas are ahead of the company’s internal predictions while some have fallen behind, he said.

Photographer: Jay Mallin/Bloomberg

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Photographer: Jay Mallin/Bloomberg

Intel CEO Paul Otellini forecasts double-digit revenue and earnings per-share growth in the next few years.

Intel forecast last month that second-quarter sales will climb as high as $10.6 billion, exceeding analysts’ predictions at that time. Full-year gross margin, the percentage of sales remaining after deducting costs of production, will widen to a record of about 64 percent, the company said.

To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.net

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