ABC Money
Home

Qimonda sinks to Q3 EBIT loss on DRAM price declines; plans capex cuts UPDATE


Published :
Wed, 25 Jul 2007 06:30
By : Agencies
Print this Story


AddThis Social Bookmark Button

(updates with consensus, outlook, CEO comment)

FRANKFURT Thomson Financial - Chipmaker Qimonda AG swung to a weaker-than-expected third quarter EBIT loss of 323 mln eur from a 100 mln eur profit a year earlier and said it will reduce planned capital spending to offset the effect of sharp declines in DRAM pricing.

Analysts had forecast an EBIT loss of 177 mln eur for the Infineon Technologies unit.

Sales fell 24 pct to 740 mln eur from 977 mln last year due to a strong decline in average selling prices as well as a weaker dollar.

Qimonda also swung to a net loss of 218 mln eur, hit by an inventory write-down of 66 mln eur in an oversupplied market.

CEO Kin Wah Loh said the latest quarter saw a sharp price in for

standard DRAM products, though 'our diversified DRAM product portfolio helped limit our average selling price decline to 40 percent quarter over quarter.'

The CEO said that, in response to the downturn, Qimonda will limit capital spending to around 900 mln eur this year, at the low end of a previously announced range.

For the next financial year, it plans to significantly cut capital spending plans down to a range of 650-750 mln eur.

Meantime, Qimonda is focused on productivity improvements and expects to

convert more than 50 pct of its fab capacities to 80nm and 75nm wafers by the

end of calendar 2007 while growing its 300mm share to 80 pct.

For the full financial year it continues to estimate an increase in its bit production of between 60 and 70 pct.

tf.TFN-Europe_newsdesk@thomson.com

jlw/jms

COPYRIGHT

Copyright AFX News Limited 2007. All rights reserved.

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.




Share on


 You Might Like
Qimonda swings to 323 mln eur Q3 EBIT loss; plans capex cuts
ROUNDUP Taiwan's Inotera Q2 net profit falls sharply vs Q1 on DRAM price tumble
+
Mercury News cutting about 40 jobs

Comment on this Article
Comment:
Title:
Name:
Please Enter
 
Here
  

 Search News

 Look For
Business
Credit cards
Finance
Loans
Money
Mortgages

 
 Stock Quotes *
SYMBOL
LAST
CHANGE
DOW JONES
10340.69
-107.24 ( -1.03 %)
NASDAQ
2792.28
22.57 ( 0.81 %)
FTSE 100
5741.15
38.78 ( 0.68 %)

SYMBOL ( 2012-01-19 )
LAST
CHANGE
STANDARD CHARTERED ( 11:35am )
1559.00
70.00 ( 4.76 %)
WOLSELEY PLC ( 11:35am )
2250.00
70.00 ( 3.20 %)
CARNIVAL ( 11:35am )
2017.00
46.00 ( 2.42 %)
LAND SECURITIES GROUP ( 11:35am )
679.50
36.50 ( 5.63 %)
WHITBREAD ( 11:35am )
1662.99
33.99 ( 2.09 %)

SYMBOL ( 2012-01-19 )
LAST
CHANGE
3M COMPANY ( 12:34pm )
85.78
0.71 ( 0.83 %)
BOEING CO ( 12:34pm )
75.70
0.64 ( 0.85 %)
JP MORGAN CHASE CO ( 12:34pm )
37.03
0.49 ( 1.33 %)
WAL MART STORES ( 12:34pm )
60.44
0.43 ( 0.72 %)
IBM ( 12:34pm )
181.50
0.43 ( 0.24 %)

SYMBOL ( 2012-01-19 )
LAST
CHANGE
F5 NETWORKS INC ( 12:11pm )
122.38
13.92 ( 11.80 %)
ICO GLOBAL COMM CL A ( 8:01pm )
99999999.99
9.37 ( 366.02 %)
PRICELINECOM INC ( 12:23pm )
525.40
6.57 ( 1.26 %)
AMAZONCOM INC ( 12:04pm )
195.65
6.21 ( 3.25 %)
MILLICOM INTERNATIONAL CELLULAR SA ( 4:00pm )
110.18
4.82 ( 4.43 %)

Gainers & Losers
Dow Jones
Euro Stoxx 50
FTSE 100
FTSE 250
FTSE AIM
FTSE ALL
Nasdaq

 Portfolio Manager

You must log in to access this area of the site. If you are not a registered user click here to sign up for instant access!


 Finance Explained

Money making ideas

Save money

Money management
Savings accounts
Investing money
Share dealing
Stock broker
Forex currency trading
Pension plans
Functions of Money

(c) 2007 ABCmoney.co.uk, All Rights Reserved
*ABCMoney.co.uk does not guarantee the accuracy of any share prices or stock quotations displayed. These are not real time quotes; all are delayed by at least twenty minutes and are for information purposes only.