Infineon Q4 profits slide

GERMAN CHIPMONGER Infineon reported rather dismal results for the last quarter with a net loss of some €280 million ($410 million). The company blamed poor performance at its DRAM subsidiary, Qimonda, for an increased loss over the €36 million posted for the same period last year.

Despite the figures, Infineon held back from issuing a profits warning, causing shares to rise almost 5 per cent in early trading in Frankfurt. Without the memory losses, the company's Q4 sales would have been up by seven per cent, rather than plummeting by a fifth to a shade under €2 billion.

Infineon has already announced its intention to reduce its stake in Qimonda - which currently accounts for 42 per cent of total sales - and become a minority shareholder by 2009. µ

See also
Infineon to cut stake in Qimonda