LONDON - German chip maker Infineon Technologies said in its latest earnings guidance that it is defining "measures to improve profitability" during the fourth quarter of its current fiscal year, but the Munich-based company not specify what actions it will take beyond a previously announced hiring freeze. Options include spending and job cuts along with plant closings.
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Infineon said it expects 4Q revenue ending on Sept. 30 to be slightly down compared to the fiscal Q3 revenue of 990 million euro (about $1,28 billion). The projection is at the bottom end of guidance released in July. Infineon said then it was freezing company headcount and evaluating cost-saving measures. The company said Tuesday (Sept. 25) it will define and implement measures to improve profitability beyond the first quarter of the 2013 fiscal year. For the first quarter of fiscal 2013, Infineon is forecasting a sequential revenue decline 10 percent.
Further details on cost cutting are expected when Infineon announces it latest financial results on Nov. 14.
Infineon CEO Peter Bauer will retire at the end of the company's fiscal year on Sept. 30. He will be replaced by Reinhard Ploss.