MUNICH, Germany With sales of 747 million (about $971 million) in the second quarter of its FY2009, chip maker Infineon met analyst expectations. However, the company lowered its outlook for the second half of the year and announced capex cuts.
The company was particularly hit by the 29 percent year-over-year decline in its Automotive segment which achieved sales of 189 million. However, sales for all other segments declined as well with the exception of Wireless Communications where the company could gain market share. As a consequence, this segment could improve revenues by 4 percent to 197 million.
Despite having deconsolidated insolvent memory subsidiary Qimonda, which in the past quarters constantly had loaded Infineon's profit figures, the company widened its segment loss to 110 million from 102 million. However the net loss narrowed to 258 million from 404 million in the first quarter. In the second quarter of the past year, the net loss even had amounted to 1.96 billion.
For the quarter ahead, the company expects sales to climb 10 percent, mainly driven by the wireless business. For the remainder of FY2009 which ends on September 30, Infineon CEO Peter Bauer however lowered its expectations. At the presentation of the Q1 figures, Bauer said he expects a sales decline of up to 15 percent for the entire year. Now, one quarter later, he said the decline will be "more than 20 percent" in comparison to FY2008.
In this context, the company announced to further reduce its Capex budget to a range between 170 million to 190 million. This is down from the already reduced budget of 250 million at the beginning of the year. In FY2008, the company had Capex investments of 370 million.
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