Company news
In a troubling sign for a tech industry dominated by Intel Corp. chips, the world’s No. 1 semiconductor company sharply cut its first-quarter revenue forecast Friday after seeing weaker-than-expected demand and a “slight” share loss to rivals.
The company said it expects to post sales of $8.7 billion to $9.1 billion, down from its previous — and scaled back — estimate of $9.1 billion to $9.7 billion. Analysts had expected sales of $9.42 billion, according to a Thomson Financial survey.
Intel shares fell as much as 3.1 percent after the announcement but regained most of the loss by Friday afternoon.
In its warning, Intel did not specify how much of its shortfall was attributed to weak demand versus market share loss. The company, following its usual practice, also did not provide a forecast for earnings, which analysts had expected to be 27 cents per share.
•Wendy’s International Inc. shares rose nearly 3 percent to a 52-week high Friday after disclosing it is adding three new directors endorsed by an influential investor to its board.
Wendy’s also said late Thursday it will speed the public offering and spin off its Tim Hortons chain, which sells coffee and doughnuts, aiming to complete that process by year’s end, and is exploring a sale of its underperforming Baja Fresh Mexican Grill unit and is.
Wendy’s shares rose $2.10, or 3.6 percent, to close at $60.54 in trading Friday on the New York Stock Exchange.
•Auto parts maker Dana Corp. filed for bankruptcy protection for its U.S. operations on Friday, joining a growing list of suppliers forced to make major restructuring moves because of the slumping U.S. auto industry.
Dana, which makes brakes, axles and other parts, has been in a downward spiral since the company announced last fall that it was restating earnings and lowering its profit forecast for 2005 because of accounting errors.
The auto supplier with 46,000 workers worldwide said in January that it lost nearly $1.3 billion in the third quarter last year while realigning its business.