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IFX - Infineon Technologies AG News Story

€31.62 1.0  3.3%

Last Trade - 14/05/21

Sector
Technology
Size
Large Cap
Market Cap £35.44bn
Enterprise Value £38.65bn
Revenue £8.61bn
Position in Universe 37th / 1053

WRAPUP 1-Continental, Osram cut costs as autos downturn hits suppliers

Tue 12th November, 2019 11:08am
* Osram falls to full-year loss, won't pay a dividend
    * Osram to cut 220 mln euros in costs from 2017-2021
    * Continental Q3 op profit down 20%, eyes layoffs
    * Infineon beats Q4 guidance, but cautious on autos

    By Edward Taylor
    FRANKFURT, Nov 12 (Reuters) - Auto suppliers Continental
 CONG.DE  and Osram  OSRn.DE  plan deeper cost cuts after
reporting weaker results on Tuesday, as a global slowdown hits
the car industry.
    Demand in China, the world's biggest auto market, has fallen
for 15 months, while carmakers are under pressure to invest in
cleaner and self-driving technologies set to reshape the
industry.  urn:newsml:reuters.com:*:nL8N27F4Y0
    BMW, Daimler and Volkswagen have all announced cost cutting
plans because of the industry downturn that could tip Germany,
which releases third-quarter gross domestic product data on Nov.
14, into recession for the first time since 2013.  urn:newsml:reuters.com:*:nL8N27L6YC
    On Tuesday Japan's Nissan  7201.T  reported a 70% plunge in 
quarterly profit.  urn:newsml:reuters.com:*:nL4N27S1TP
    "Osram does not expect global automobile production to
recover in the short term," the maker of headlights and other
components said, unveiling plans to cut 220 million euros ($242
million) in costs between 2017 and 2021. 
    It will also cut 800 jobs in Germany, trade union IG Metall
said.
    Osram fell to a full-year loss and said it would not pay a
dividend. Medium-term targets will be achieved two years later
than expected, it added.  urn:newsml:reuters.com:*:nL8N27S145
    Continental's third-quarter operating profit fell 20%,
leading the brakes and tyres maker to look at layoffs as it
forecast a slowdown in automotive production over the next five
years.  urn:newsml:reuters.com:*:nASM0001MJ
    "We are in talks with works council representatives," Chief
Financial Officer Wolfgang Schaefer told Reuters, adding the
company would seek to strike job reduction deals with staff by
the end of this year. 
    "We have said that this programme has been started, and that
this is not yet the end, and that we may have to consider
further measures," Schaefer said.
    Meanwhile, German chipmaker Infineon Technologies
 IFXGn.DE , a specialist in semiconductors used in electric
drivetrains and wind turbines, beat its own profit guidance in
the fourth quarter, but remained cautious about the car sector.
    "We are feeling the effects of weak global auto demand and
do not expect any improvement for the time being," CEO Reinhard
Ploss said.
    "The general economic environment remains fraught with
macroeconomic and political uncertainty," said Ploss, adding he
did not expect markets to recover before the second half of the
fiscal year.    
    ($1 = 0.9074 euros)

 (Reporting by Jan Schwartz, Douglas Busvine, Joern Poltz and
Alexander Huebner; Writing by Edward Taylor; Editing by Jason
Neely and Mark Potter)
 ((Edward.Taylor@thomsonreuters.com; +49 69 7565 1187;))
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