Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Chipmaker Infineon plans drastic cost-cutting  Join our daily free Newsletter

MENAFN - AFP - 14/11/2012

No. of Ratings : 0
Add to Mixx!


 


(MENAFN - AFP) German chip maker Infineon on Wednesday announced a brutal series of cost-cutting measures, including putting some workers on reduced hours, as it unveiled a disappointing set of results.

"Macroeconomic headwinds are getting stronger and we do not see this changing in the near term. We are therefore forecasting a drop in revenue for the 2013 fiscal year," Infineon boss Reinhard Ploss said in a statement.

Cost-cutting measures would include "temporarily switching off underutilised equipment, reducing the temporary workforce and the selective use of short-time work," the firm announced.

In addition, investments for next year would be slashed from 500 million euros (637 million) to 400 million euros and certain development projects would be shelved.

Infineon also said it planned to freeze hiring to maintain its staff levels at current levels and to postpone certain salary increases.

For its fiscal year 2012-2013, Infineon said it expected a drop in earnings by between roughly five and 10 percent.

Group earnings dropped two percent in the fiscal year 2011-2012 just ended to 3.9 billion euros. Operating profit fell by 42 percent to 432 million euros.

The firm put the poor figures down to "global economic uncertainties caused by high public-sector debt levels in Europe".

The eurozone debt crisis "caused customers to be increasingly cautious in their willingness to spend as the 2012 fiscal year took its course," the company complained.

Despite the poor news, investors appeared buoyed by the announcement of the cost-cutting measures.

Infineon stock was the top gainer on the DAX market of leading German shares, up more than three percent despite the broader market being marginally in the red.


 






  MENA News Headlines


 
Click to Apply






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help