Intel announces financial results for 2017
Intel Corporation today reported full-year and fourth-quarter 2017 financial results. The company also announced that its board of directors has approved an increase in its cash dividend to $1.20 per-share on an annual basis, a 10 percent increase. The board also declared a quarterly dividend of $0.30 per-share on the company’s common stock, which will be payable on March 1 to shareholders of record on February 7.
‘2017 was a record year for Intel with record fourth-quarter results driven by strong growth of our data-centric businesses,’ said Brian Krzanich, Intel CEO. ‘The strategic investments we've made in areas like memory, programmable solutions, communications and autonomous driving are starting to pay off and expand Intel's growth opportunity. In 2018, our highest priorities will be executing to our data-centric strategy and meeting the commitments we make to our shareholders and our customers.’
‘The fourth quarter was an outstanding finish to another record year. Compared to the expectations we set, our revenue was stronger, our operating margins were higher, and our spending was lower,’ said Bob Swan, Intel CFO. ‘Intel's PC-centric business continued to execute well in a declining market while the growth of our data-centric businesses shows Intel's transformation is on track.’
Intel's fourth-quarter results reflect an income tax expense of $5.4 billion as a result of the US corporate tax reform enacted in December. This includes a one-time, required transition tax on our previously untaxed foreign earnings, which was partially offset by the re-measurement of deferred taxes using the new U.S. statutory tax rate. Looking ahead, the company is forecasting a 2018 tax rate of 14 percent as the Tax Cuts and Jobs Act helps level the playing field for U.S. manufacturers like Intel that compete in today's global economy.
‘Intel has a rich history of investing in US-led research and development and U.S. manufacturing," said Swan. "The tax reform is further incentive to continue these investments and reinforces our decision to invest in the buildout of our Arizona factory. It also informed the dividend increase we're announcing today.’