Applied Materials’ Profit Falls as Orders Shrink

Applied Materials Inc., the world’s largest manufacturer of semiconductor production equipment, said its fiscal third-quarter profit fell 16% as chip makers cut orders and slowed their capacity expansion.

Net income fell to $369.6 million, or 23 cents a share, from $440.6 million, or 26 cents, a year earlier, the Santa Clara, Calif.-based company said. Sales declined 27% to $1.63 billion in the period ended July 31. Excluding a tax credit, profit was 15 cents, beating estimates by 1 cent.

Orders shrank 5% to $1.47 billion, meeting a company forecast, and sales fell for the second straight quarter.

Shares of Applied Materials rose 63 cents to $17.80 in extended trading after the results were announced. In regular trading, the shares fell 47 cents to $17.17.