UMC (2303)closed @50.00 - 2.50 vol 48,418,372
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TAIWAN WEIGHTED closed @ 5070.52 -88.11 (-1.71% )
Day's Range :5052.25 - 5132.60
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TAIPEI, June 18 (Reuters) - ING Barings cut its 2001 net
profit forecast for United Microelectronics Corp UMC by 45.7
percent to T$9.726 billion on Monday after the contract chipmaker
warned it could make an operating loss in the second quarter.
The Dutch securities house also cut its price target for UMC
to T$77 from T$100, though it maintained a "buy" rating for the
stock, analyst Chris Hsieh wrote in a research note.
UMC was down T$2.5, or more than four percent, at T$50.0 by
0445 GMT after saying on Friday it expected to report a
second-quarter operating loss and saw revenues falling
sequentially by 35 percent due to weak market conditions.
Hsieh said he had changed his assumptions for UMC's capacity
utilisation rate, a closely-watched indicator for contract
chipmakers, or foundries.
"Utilisation should deteriorate further from the estimated 43
percent in May to 37 percent in July assuming orders hit a bottom
in May and production takes an average of two months to finish,"
Hsieh wrote.
Hsieh said UMC, the world's second-largest foundry behind
Taiwan Semiconductor Manufacturing Co 2330.TW TSM, saw
order forecasts for its top 15 customers grow 26 percent
month-on-month in May. |
