"Yet many people continue to focus on the negative, such as the shameful examples of corporate corruption and near-term earnings disappointments," he said.

If so, Cannon could be forced to amortize a larger proportion of its production costs now, which would reduce near-term earnings.

"We are consciously willing to sacrifice maximization of near-term earnings to protect key investments," he said.

"China has the potential for significant near-term earnings upside," he said, "North America is holding ground, and the company did not rely on mortgage."

Mr. Phelps said the announcement, while earlier than expected, was not likely to change analysts' estimates for Intel's near-term earnings.

"Historically," he said, "the place to bet on long-term growth, as opposed to near-term earnings, is technology."

Though analysts have cut near-term earnings estimates, long-term expectations for United States companies remain high.

Mr. Ebbers has shown in the past, however, that he will sacrifice near-term earnings for long-term profit.

Tenneco's recent sale of assets should be very positive for near-term earnings.

Food and soft-drink issues, whose near-term earnings outlook is stable, were also higher.