Intel sales expectations boosted
That is significantly higher than the previous range of $8.6bn to $9.2bn analysts said.
Revenues are being driven by strong worldwide demand for the company’s Intel Architecture products.
Experts say the upturn is further proof that the US economy is getting back to a strong growth trajectory.
Under a new government law the group has indicated that up to $6bn of profits could be eligible for repatriation to the US next year to take advantage of a 5.25% tax charge on repatriated profits being introduced for one year.
It is designed to keep investment at home and to generate more jobs in the economy. Intel said it has reached no decision yet on the issue.
Gross margins in the fourth quarter are expected to be between 55% and 57% compared to the previous expectation of 56%, plus or minus a couple of points.
The world’s biggest chip maker employs 3,400 in Ireland, mainly at its Kildare plant in Leixlip.
Another 1300 jobs are involved in sub-supply services. To meet the demand it is working 24 hours a day, seven days a week, a spokeswoman said.
Intel’s Kildare operation is the largest outside the US and the fourth largest in the group.
Up to $5bn has been invested and another $2bn will be in place in the Leixlip plant by 2006.
In its statement the company said it is making progress in cutting its overall stock supplies thanks to higher demand and says the decrease will be in the order of several hundred million by the end of the quarter.
The company also said it could be hit by tax charges in the fourth quarter and/or future periods depending on the timing of the company’s decisions related to the repatriation of profits under the Bush amnesty.
Intel said it was studying the “possibility” of using a new law allowing US firms to repatriate earnings. “The company is reviewing the matter and does not yet have formal plans regarding the repatriation”, it said.
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