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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: 4rthofjuly007 who wrote (5745)	11/14/2001 6:21:32 PM
From: orkrious	Read Replies (2) \| Respond to of 99280

So who is reducing cap-ex? Absolutely everyone. Find me one company with less than a 20% decrease. Many are 30-40%.

To: 4rthofjuly007 who wrote (5745)	11/14/2001 6:33:33 PM
From: Israel	Respond to of 99280

cuts in capex across the board for `02.. this from infenion just yesterday.. Infineon cuts capital spending 61% in fiscal '02, posts $465 million loss in quarter Semiconductor Business News (11/13/01 08:53 a.m. EST) MUNICH -- Infineon Technologies AG today reported a 15% sequential drop in sales to 1.09 billion euros ($970 million) in the company's fiscal fourth quarter, ended Sept. 30, compared to 1.28 billion euros ($1.14 billion) in the prior three-month period. The revenue decline, caused mostly by price erosion in memories and other IC products, resulted in a net loss of 523 million euros ($465 million) in the fiscal fourth quarter. "We are making significant progress in the implementation of our comprehensive "Impact" cost saving program aimed at reducing operating costs by more than 1 billion euros until the end of the 2002 fiscal year [which concludes Sept 30, 2002]," said Ulrich Schumacher, president and CEO of Infineon. As part of the belt tightening, Munich-based Infineon said it was lowering its capital spending plans 61% to about 900 million euros ($801 million) in the new fiscal 2002 year from 2.3 billion euros ($2.05 billion) in the just-ended fiscal year. Before the end of the 2001 fiscal year, Infineon said it had lowered its capital spending from a previous estimate of 2.8 billion euros. Infineon said the outlook for chip markets remains uncertain in the next six months due to the slowdown of worldwide economic growth and the current "global political environment." The company expects to see continued price erosion in DRAMs due to excess manufacturing capacity. Cellular phone shipments also have not recovered from a sharp drop off in early 2001, the company noted. The company's Memory Products Group posted revenues of 243 million euros ($216 million) in the fiscal fourth quarter, a sequential drop of 27% from 332 million euros ($295 million) in the prior quarter and a decline of 54% from 1.27 billion euros ($1.13 billion) in the period last year. Infineon's Memory Group had a loss before interest and taxes of 522 million euros ($465 million) in the just-ended quarter compared to earnings of 727 million euros ($647 million) in the period last year.