Semiconductor: Infineon expects a profit slump and plans austerity program


In the final quarter of the financial year 2011/12, which just ended, the figures are at the lower end of the forecast, as Infineon announced on Tuesday in Neubiberg near Munich. The company expects slightly less revenue than in the previous quarter and a profit margin of about twelve percent. However, for the first quarter of the new fiscal year, Infineon predicted a decline in revenue of up to ten percent and a margin of only five to seven percent.

Therefore, the board will define "measures to improve earnings, " announced the company. Infineon's share price fell more than 4 percent after the announcement. Infineon employs around 8300 people in Germany, most of them in Dresden, Regensburg and Munich. Worldwide, the Group has around 26, 000 employees. (Dpa / tc)