[November 20, 2009] German chipmaker Infineon makes Q4 net profit of C14 million, helped by cost cuts Tweet (Canadian Press DataFile Via Acquire Media NewsEdge) FRANKFURT, Germany _ German chipmaker Infineon Technologies AG said Thursday its fourth quarter net income rose sharply from a large loss a year ago, helped by cost reductions. Infineon, based in Neubiberg, said net profit totalled C14 million (US$21 million) in the fourth quarter, compared with a loss of C884 million in the fourth quarter of 2008. Revenue declined 18 per cent to C855 million from C1.05 billion in the fourth quarter a year ago. Compared to the third quarter, however, revenue increased 12 per cent. The company's fiscal year begins in October. For the full year, Infineon still had to report a loss, although it was able to reduce it considerably. The company experienced a steep decline in demand for its products as a result of the economic downturn, and also saw restructuring effects as a result, including job reductions. For the full fiscal year, ended September 30, the company reported a net loss of C671 million compared to a net loss of nearly C4 billion in the 2008 fiscal year. Revenue in the 2009 fiscal year declined to C3.03 billion from nearly C4 billion in 2008. ``The strong impact of our cost reduction measures during the 2009 fiscal year have stabilized our balance sheet and helped to increase our financial freedom and flexibility,'' said Peter Bauer, the company's chief executive in the report. ``It will remain our goal to increase revenues and profitability on a sustainable basis and thus generate value for shareholders and other stakeholders alike,'' Bauer said. Infineon said for the first quarter of the 2010 fiscal year, it expects group revenue to be on the same level as in the fourth quarter. It said revenue in the chip card and security division to see some seasonal slowdown, while the wireless solutions division, which makes products for wireless telephones, would be negatively affected by the weaker U.S. dollar. For the full fiscal year 2010, the company expects sales growth of 10 per cent, assuming the world economy stabilizes or grows and the exchange rate of the euro versus the U.S. dollar remains around $1.50. Infineon said the increase is expected to be driven especially by the automotive parts division. Infineon also makes electronic control units for automobiles. Investors weren't convinced, however, pushing Infineon shares 4.7 per cent lower to C3.34 in Frankfurt morning trading. On the Net: http://www.infineon.com (c) 2009 The Canadian Press [ Back To TMCnet.com's Homepage ]