* Sees fiscal 2013 revenue down 5-9 pct
* To cut investment to 400 mln euros, from 890 mln
* Fiscal Q4 operating profit in line with forecast
* Shares up 4.3 percent
(Adds shares, analyst comment)
By Harro Ten Wolde
NEUBIBERG, Germany, Nov 14 German chipmaker
Infineon said a darkening economic outlook will
likely hit industrial clients in its 2012/13 year and it will
cut planned investments.
The global chip market is going through a rough period as
sectors from consumer electronics to automotive slow. Chip sales
this year are down 5 percent, according to the Semiconductor
"Macroeconomic headwinds are getting stronger and we do not
see this changing in the near term," chief executive Reinhard
Ploss said on Wednesday.
Infineon said it would cut full-year investment to 400
million euros ($508 million) from a planned 500 million and
compared with 890 million in its 2011/12 year to end-September.
Infineon shares, which had been heavily shorted this week
ahead of the results, were up 4.3 percent by 1145 GMT and at the
top of a 0.5 percent stronger technology index.
Analysts welcomed the budget discipline and a stable 0.12
euro dividend. "Continuation of the dividend payment is a good
sign," DZ Bank analyst Harald Schnitzer said.
The company reported a 41 percent drop in fourth-quarter
operating profit, excluding special items, to 116 million euros,
in line with the forecast in a Reuters poll.
"Global economic uncertainties caused by high public-sector
debt levels in Europe caused customers to be increasingly
cautious in their willingness to spend," the company said.
Infineon also said it expected full-year revenue to fall 5-9
percent, with an operating margin of 5-9 percent of revenue.
That is mainly the result of worsening conditions at its
clients in the industrial sector, which accounts for about a
fifth of its operations.
Infineon said it planned to cut costs through measures such
as temporarily switching off underutilised equipment, reducing
temporary staffing and selective use of shorter working hours.
The measure were expected to yield 100 million euros annual
The automotive unit, which with more than 40 percent of
group revenue is Infineon's most important unit, was expected to
do better than other units.
Infineon said revenue will remain at low levels in the first
half of its year and improve considerably in the second half.
($1 = 0.7867 euro)
(Editing by Dan Lalor and David Goodman)