Qimonda sinks to Q3 EBIT loss on DRAM price declines; plans capex cuts UPDATE |
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Wed, 25 Jul 2007 06:30
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(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 forstandard 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 toconvert more than 50 pct of its fab capacities to 80nm and 75nm wafers by theend 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.comjlw/jmsCOPYRIGHTCopyright 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.
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Qimonda swings to 323 mln eur Q3 EBIT loss; plans capex cuts 