Applied Materials Profit Plunges as Sales Fall

Applied Materials Inc.’s fiscal third-quarter profit fell 51% as sales at the top computer chip equipment maker tumbled amid Asia’s economic slump and lackluster demand for semiconductors. Excluding charges, profit fell to $70.6 million, or 19 cents a diluted share, from $145.2 million, or 38 cents, excluding a gain, a year ago. Sales for the quarter ended July 26 fell 16% to $884.5 million from $1.06 billion. New orders plummeted by half to $608 million from $1.24 billion. Applied warned in July that earnings would fall short of forecasts of 21 cents because of delayed orders and cutbacks in capital spending by computer chip makers, leading analysts to reduce their profit expectations to 16 cents. Shares of Santa Clara-based Applied fell 81 cents to close at $32.88 on Nasdaq. Results were reported after the close of regular trading.