Aixtron warns on 2012 profit on slow demand recovery
FRANKFURT (Reuters) - German chip equipment maker Aixtron (AIXGn.DE) warned it would post a bigger than expected 2012 operating loss after a sluggish recovery of demand forced it to write down the value of its inventory.
"Despite the positive long-term outlook for the LED (light-emitting diode) industry, the existing stock held was inappropriately high in comparison to the current subdued level of demand in the market," Aixtron said in a statement early on Wednesday.
A 51.5 million euro ($66.8 million) writedown in the third quarter will lead to a full-year operating loss of 125 million euros, more than three times as much as analysts on average expected in a Reuters poll.
In the third quarter alone, the operating loss came to 78 million euros, Aixtron said.
The company said it expected to return to profitability in 2013 thanks to rising demand for equipment used to make LEDs.
($1 = 0.7714 euros)
(Reporting by Maria Sheahan)
- Malaysia Airlines plane missing at sea off Vietnam, presumed crashed |
- China draws 'red line' on North Korea, says won't allow war on peninsula
- Warning shots fired to turn monitors back from Crimea |
- Malaysian plane crashed off Vietnam coast: state media