THE computer chip company Intel, which has a major plant in Leixlip, Co Kildare, has announced a 41 per cent increase in turnover to a record $16.2 billion (£10.1 billion) for last year. After tax profits increased from $2.3 billion (£1.44 billion) to $3.6 billion (£2.25 billion).
Following the results the vast majority of Intel's 2,800 staff in Kildare will be paid an average cash bonus of £700, which is equivalent to 10.3 days pay. The bonus is for the second half of last year land brings their average overall cash bonus to £1,475 for 1995.
The bonuses are taxable but under a new scheme Intel staff can take the bonus in shares, which, if held for five years, can be realised tax free. The 800 staff employed by contractors on the Intel site do not qualify for the bonus.
Intel's fourth quarter results showed large increases in both sales and after tax profits but were lower than expected due to excess inventories. Intel also said sales failed to meet projections in the fourth quarter.
In late afternoon trading on the Nasdaq market Intel set record levels of trading with more than 60 million shares changed hands, surpassing the previous Nasdaq record of 56 million shares set on July 19, also by Intel.
Intel was also scraping near its low for the day, down $5.50 at $50.25 in late afternoon trading, with analysts disappointed by the fourth quarter figures.
Turnover for the fourth quarter was up 42 per cent to $4.58 billion while post tax profits increased from $372 million to $867 million. However, the fourth-quarter figures for 1994 included a $475 million charge in relation to the Pentium chip problem.
Intel's president and chief executive, Mr Andy Grove, said profitability was hit during the quarter by "unusually high reserves" of components purchased for use in PC motherboards which hold the essential elements, of a computer.
The company said that it expected sales for the first three months of this year to be in line with fourth quarter sales of $4.6 billion.
Intel has invested $1 billion in its two Irish operations in Leixlip and will spend a further $1.5 billion over the next two years. The investment, will create another 2,000 jobs, bringing total employment on the site to about 7,000.
