Applied Materials’ Quarterly Profit Doubles

Santa Clara-based Applied Materials Inc. said fiscal fourth-quarter earnings more than doubled on rebounding sales of semiconductor-manufacturing equipment and wider profit margins, exceeding analysts’ expectations. The company said profit--before a charge--rose to $187.3 million, or 49 cents a share, from $89.4 million, or 24 cents, a year ago. Applied Materials’ gross profit as a percentage of revenue widened to 48.1%, its highest in eight years and an increase from 47.2% in the third quarter. The strong results from the world’s largest supplier of machinery used to make semiconductor wafers indicate that demand for capital equipment has rebounded from weakness earlier this year. Wall Street was expecting the company to earn 46 cents a share. Applied Materials also said new orders doubled in the quarter to $1.37 billion from $683.2 million a year ago and were up almost 11% from the third-quarter mark of $1.24 billion. “Even though the entire industry has not done as well, we are gaining share and increasing bookings,” Chairman and Chief Executive James C. Morgan said. The company announced its quarterly results after markets closed. Its shares rose $2.81 to close at $37.75 on Nasdaq.