Intel says it will spend $6 billion to $8 billion on new chip manufacturing technology in its U.S. factories and will build a new development plant in Oregon. Intel Corp. said Tuesday the investment will create between 6,000 and 8,000 construction jobs and 800 to 1,000 permanent high-tech jobs across its U.S. operations in Oregon and Arizona. It also helps the company keep its current base of factory workers at its U.S. sites in these states. It says its new Oregon facility is scheduled to start up in 2013. Intel is the world’s largest maker of microprocessors, the “brains” of computers. The company says three-fourths of its microprocessor manufacturing happens in the U.S.
Coca Cola profits continue to climb
U.S. sales for Coca-Cola Co. extended their rebound in the third-quarter, coupling with strong performance abroad to push the world’s largest soft drink maker’s net income up 8.4 percent. The second consecutive quarter of improvements in its North American drinks business is encouraging news for Coca-Cola after four years of declines. The company also raised the value of shares it expects to buy back this year to $2 billion from $1.5 billion. The company, based in Atlanta, said Tuesday it earned $2.06 billion or 88 cents per share in the three months ending Oct. 1, up from $1.9 billion or 81 cents per share last year. Excluding one-time items related to restructuring, the company earned 92 cents per share. Analysts expected the company to earn 89 cents, according to Thomson Reuters.
China raises interest rate to guide growth
China raised its key interest rate Tuesday for the first time since the global crisis. The move is intended to control inflation and rapid growth even as other Asian economies move to keep their recoveries on track. The rate hike, China’s first since 2007, reflected Beijing’s focus on guiding growth to a more sustainable level rather than revving up the economy. China’s economy grew 10.3 percent in the second quarter. The rate on a one-year loan was raised by 0.25 percentage points to 5.56 percent effective Wednesday, said the central bank. The one-year rate paid on deposits was raised, also by 0.25 percentage points, to 2.5 percent.
Harley profits rise despite sales drop
Harley-Davidson reported slumping sales for the third quarter Tuesday though it more than tripled profits thanks to its financial services division and efforts slim down in a bad economy. The Milwaukee company also said it’s likely that full-year motorcycle shipments will decline 5 percent to 7 percent from last year and company shares nearly 7 percent. Net income was $88.8 million, or 38 cents per share, for the three months that ended Sept. 26. That compares with income of $26.5 million, or 11 cents per share, in the same period last year. The company reported a 7.7 percent decrease in retail motorcycle sales worldwide.
From Herald news services