Infineon sees recovery in 2004

19 January 2004

MUNICH – Unveiling a modest quarterly surplus, German semiconductor manufacturer Infineon forecast Monday a recovery in the industry in the course of this year.

The Munich-based Siemens group company posted earnings of just EUR 34 million in the quarter ending 31 December, the first quarter of its business year. In the preceding last quarter of 2002/2003 it had earned EUR 49 million.

Sales fell quarter on quarter from EUR 1.76 billion to EUR 1.62 billion.

Despite the short-range dip, Infineon, which is one of Germany’s top-30 DAX companies, was better off than a year before: in the quarter ending 31 December 2002, it lost 40 million euros.

Chief executive Ulrich Schumacher said that despite persistent downwards price pressure in the semiconductor market, there were clear signs of recovery. He anticipated stable growth in the year to September in all sectors.

Infineon’s target was to expand market share and to improve profitability, he said.