High Demand, Low Costs Boost Micron Profit

Micron Technology Inc., the biggest U.S. maker of computer-memory chips, reported a fiscal third-quarter profit on higher demand from personal-computer makers and lower production costs. Net income was $274.9 million, or 47 cents a share, compared with a loss of $27.7 million, or a split-adjusted 5 cents a share, a year ago. Sales doubled to $1.79 billion from $863.8 million. The results far exceeded the 34 cents-a-share average estimate of analysts polled by First Call/Thomson Financial. Estimates ranged from 16 cents to 58 cents. The company also said it will raise capital spending to $2 billion next year, from an estimated $1.5 billion this year to help boost production. Shares in Boise, Idaho-based Micron closed off $3.88 at $86.88 on the NYSE, before the earnings were released.