Intel: Financial Crisis Poses Risk To Business

World’s largest chip maker said Friday that the global financial crisis could hurt its business if important suppliers become insolvent, leading to product delays.

NEW YORK (AP) -- Intel Corp., the world's largest chip maker, said in a regulatory filing Friday that the global financial crisis could hurt its business if important suppliers become insolvent, leading to product delays, or if customers are unable to obtain credit to pay for Intel products.

The statements, made in a section on risks for investors in a quarterly filing with the Securities and Exchange Commission, largely reiterated guidance the company offered in its Oct. 14 earnings report. Intel had posted a profit slightly above Wall Street's expectations, though its sales inched up just 1 percent.

Other risks Intel outlined Friday include higher expenses and the potential inability to obtain short-term financing of its operations from commercial paper.

Following the earnings report two weeks ago, Intel Chief Executive Paul Otellini warned that it is "hard to know" what effect the financial crisis will have on chip demand in the fourth quarter. But Otellini said he expects the company to outpace rivals during the period because of its sales momentum and strong products and balance sheet.

Intel's shares fell 6 cents to $16.11 in early afternoon trading. The stock is down about 39 percent since the beginning of the year.

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