Chipmaker Infineon back in the black

9th November 2004, Comments 0 comments

9 November 2004 , MUNICH - German semiconductor company Infineon AG reported on Tuesday that it returned to the black in fiscal 2004 after three straight money-losing years amid a general recovery in the world chip market, but warned of a slowdown ahead. Infineon chief executive Wolfgang Ziebart said the company is "not satisfied" with the earnings, which came to EUR 61 million in the year ending 30 September. He cited costs from negative antitrust rulings for having cut into profits. The figure posed a ne

9 November 2004

MUNICH - German semiconductor company Infineon AG reported on Tuesday that it returned to the black in fiscal 2004 after three straight money-losing years amid a general recovery in the world chip market, but warned of a slowdown ahead.

Infineon chief executive Wolfgang Ziebart said the company is "not satisfied" with the earnings, which came to EUR 61 million in the year ending 30 September. He cited costs from negative antitrust rulings for having cut into profits.

The figure posed a nearly EUR one half billion turnaround after Infineon had lost EUR 435 million in fiscal 2003.

The final earnings figure came after Infineon managed a EUR 44 million profit in the last quarter through 30 September, falling far short of many analysts' forecasts of a fourth-quarter earnings of some EUR 145 million.

Full-year sales at Europe's second-largest semiconductor concern reached EUR 7.19 billion, up 17 percent on fiscal 2003. The final quarter sales were EUR 1.99 billion, up 13 percent.

"We were able to strongly increase revenues and operating cash flow during the last fiscal year but are not satisfied with the earnings," said Ziebart, who took the helm at Infineon last March in replacing Ulrich Schumacher.

"In fiscal year 2004, we showed a revenue improvement for every quarter. But now we have to prepare ourselves for a slowdown."

Ziebart was due to discuss Infineon's 2004 figures at a press conference later on.

In its statement, Infineon said that the company "sees signs of a slowdown in several of its application segments during the first quarter of fiscal year 2005".

DPA

Subject: German news

 

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