Micron Says It Will Cut Production as Memory Chip Demand Stalls

Micron, the largest U.S. maker of computer memory chips, said it’s cutting production in response to a slump in demand for its key products, according to Bloomberg. The company also said it will reduce its investment in improving manufacturing by about $500 million.

Revenue in the current period will be about $4.8 billion, plus or minus $200 million, the company said on a conference call. That compares with an average analyst prediction of $5.34 billion. The middle of that range would represent a sales decline of 38 percent. Micron projected profit of 85 cents a share, plus or minus 10 cents, in the period ending in May.

Profit, excluding certain items, was $1.71 a share in the fiscal second quarter. Revenue fell 21 percent to $5.84 billion in the period ended Feb. 28. Analysts, on average, projected profit of $1.65 a share on sales of $5.83 billion. That sales decline was the first in more than two years.