Auto Electronics

Infineon reports Q3 loss

Infineon Technologies AG reported a net loss of €240 million (€0.32 per share) on revenues of €1.6 billion for its third quarter, ended June 30, compared with a loss of €56 million (€0.08 per-share) on revenues of €1.9 billion for the third quarter of 2004.

Contributing to the loss were charges of €81 million, primarily in connection with the planned phase-out of production at Infineon’s Munich-Perlach facility, and impairment charges in the Communication segment, the company said.

"We have made good progress in our corporate restructuring. However, in the third quarter we have seen adverse effects on memory products and security and chip-card ICs as well as at some of our baseband customers," said CEO and President Dr. Wolfgang Ziebart. "In spite of this, we expect an improved fourth quarter compared to the third quarter."

Infineon’s Automotive, Industrial and Multimarket segment, which includes its security and chip-card and ASIC and Design Solutions businesses, recorded earnings before interest and taxes (EBIT) of €23 million on revenues of €625 million, compared with EBIT of €74 million on revenues of €669 million. The company said that slight improvements in automotive and industrial revenues could not fully offset further deterioration in the security and chip-card business.

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