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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (1178)	5/23/2001 10:13:55 PM
From: Justa Werkenstiff	Read Replies (1) \| Respond to of 10065

Infineon CEO Says Inventories, Price Pressure Up for Some Chips Cecile Daurat Barcelona, May 23 (Bloomberg) -- Infineon Technologies AG, the chip-making unit of Siemens AG, has seen inventories of basic memory chips rise in the past two weeks, while pressure to cut prices in the smart card market is mounting, an executive said. Chief Executive Ulrich Schumacher added that, ``We will not change our guidance.'' He was speaking at Credit Suisse First Boston's technology conference in Barcelona. Schumacher's comments come after Infineon told analysts at a meeting in London yesterday that the increasing price pressure and rising customer inventories are undermining its margins. The shares fell as much as 1.90 euros, or 4.1 percent, to 44 euros ($37.80) today, extending yesterday's 1.3 percent decline. ``They basically downgraded our expectations for three divisions,'' Laura Baker, an analyst at UBS Warburg who rates the stock a ``hold,'' said yesterday. Infineon spokeswoman Katja Schlendorf refused to comment yesterday and didn't return calls seeking details on the meeting. Infineon is under pressure to cut prices, while some of the factories in Germany and France are operating at 70 percent of capacity or less, said analysts who attended the London meeting. One Singapore plant is operating at 30 percent, they said. 05/23/2001 4:52