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Semiconductor Manufacturing International Corp.'s (SMI)
third-quarter loss widened substantially on weaker chip demand from
a year ago.
China's largest chip foundry by capacity also expects
fourth-quarter revenue to rise 2% to 5% from the latest quarter,
less than what the many anticipate the industry going
sequentially.
In July, Chief Executive Richard Chang said "the worst is over,"
and saw the recovery continuing in the third quarter as demand for
computers and consumer products in China picks up.
Global chip makers have suffered amid the pullback in consumer
spending. U.S. chip giant Intel Corp. (INTC) two weeks ago served
up further evidence that the computer market is healthier than many
people suspected, reporting third-quarter results that were well
above upbeat projections it issued weeks earlier.
SMIC's loss widened to $69.4 million, or 16 cents per American
Depositary Share, from $30.3 million, or 8 cents per ADS. Revenue
dropped 14% to $323.4 million, but rose a bigger-than-expected 21%
from the second quarter amid increasing orders.
Gross margin fell to 0.8% from 7.2%, but the prior quarter's
sales didn't exceed manufacturing costs.
Factory utilization rose to 87.3% from 75.4% in the prior
quarter, in line with Chang's July forecast, but fell from 90.5% a
year ago.
SMIC's ADS closed at $89 and didn't trade premarket. They are up
27% the past year.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com