Infineon Reports $511M 4Q Loss
Nov. 08, 2002
%mlink(STRY:; PHOTO:; AUDIO:%)
FRANKFURT, Germany (AP) _ Computer chip maker Infineon AG on Friday reported a 506 million euro ($511 million) loss for its fourth quarter, saying that demand for its products remains weak and isn't likely to pick up soon.
The loss in the July-September period compared to a loss of 523 million euros in the same quarter the year before. Total revenues for the quarter were 1.38 billion euros ($1.40 billion), up 28 percent from 1.09 billion euros.
``The market outlook for the coming months shows no clear signs of a sustained improvement in demand yet,'' chief executive Ulrich Schumacher said. ``And we expect continued pricing pressure in all of our groups in the months ahead.''
Chip makers have been hammered by a slump in demand as businesses cut back computer purchases due to a sluggish economy and overinvestment during the tech boom of the late 1990s.
Schumacher said chip demand for mobile phones had ``stabilized'' and that demand for automotive semiconductor products should increase moderately. But while demand had increased somewhat for computer memory, the company said, it is too early to assume a lasting market improvement.
The Munich-based company's net loss for the quarter included a 275 million euro ($278 million) one-time charge for a deferred tax allowance.
For the year, the company lost 1.02 billion euros ($1.03 billion) on sales of 5.21 billion euros ($5.26 billion), compared with a loss of 591 million euros on sales of 5.67 billion euros the year before.
Infineon's U.S. shares were down 84 cents to $9.48 in afternoon trading on the New York Stock Exchange.