LONDON Automotive chip manufacturer Melexis Microelectronic Integrated Systems NV (Ieper, Belgium) has issued a warning that it expects its Q4 sales to fall 25 and 30 percent compared with the third quarter. Joint CEO Francoise Chombar said that the company would continue to streamline its cost structure, but did not indicate whether this would include job cuts.
Melexis made a net profit of 8.5 million euro (about $11 million ) on revenues of 48.8 million euro (about $63 million) for the third quarter, a decrease of 4 percent compared to the same quarter of the previous year.
Melexis said that in 2009 it expects an overall vehicle production drop of 5 to 10 percent versus 2008. Melexis added that since 1982 the largest decrease in passenger car sales was in 1991, when sales were about 3.3 percent lower than the previous year. In 1987, when another major stock market crash occurred, sales dropped 1 percent compared to 1986.
"Based on this and at a U.S. dollar exchange rate of 1.3 [to the euro], we expect Melexis' revenues in 2009 to be stable compared to 2008 with recovery mainly in HY2," Melexis said in a statement.
"The general tendency of insisting on commitments towards developing and producing greener cars in return for possible government help to the automotive industry is a positive one," said Rudi De Winter, vice chairman and joint CEO of Melexis, in the same statement.
Francoise Chombar, joint CEO of Melexis added: "Melexis will continue to streamline its cost structure to match the challenging market environment. We are equally selective in directing our development efforts towards those market growth segments which fit our technologies and have the highest chances of success."
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