Short-time work at infineon

Short-time work at infineon

New ceo reinhard ploss said: "where we can save, we are saving now." But he ruled out any job cuts. The capital goods industry is ordering far fewer chips, but demand from the automotive industry is still reasonably stable, he said.

In the fiscal year 2011/12, which ended at the end of september, revenues decreased slightly from 4.0 to 3.9 billion euros. But profits fell from 1.1 billion to just 427 million euros due to high capital spending. And the outlook is bleak: "the economic headwind is getting stronger. And we don’t see it turning around quickly," said ploss. That is why he is now putting the brakes on costs.

In warstein, north rhine-westphalia, where infineon manufactures chips for siemens wind turbines and locomotives, around 1100 employees have been put on short-time working until the end of march. The dresden plant, on the other hand, where chips for cars are manufactured, is still running at relatively good capacity. "Short-time work in dresden is not even up for debate.

" Said ploss. "We are cutting back on vacation days and overtime and letting temporary contracts expire where necessary and appropriate," he explained. When capacity utilization is low, "we also shut down plants". Salary increases under the collective bargaining agreement have been postponed for half a year. Research and development projects have been put on hold and investments cut from 890 million euros to 400 million euros, the group CEO announced.

Infineon has just increased the number of employees in germany to 8,400; worldwide, the number has risen to 26,700 employees. "We will maintain the number of employees," stressed ploss. The next upswing will come at some point, and "then we can ramp up again very quickly. The long-serving head of technology only took over as CEO in october from peter bauer, who had been ill since 2008 and had brought the group out of the red and turned it around.

However, the automotive and industrial supplier cannot escape the economic downturn – competitors such as intel and texas instruments are also feeling the effects of shrinking demand. Above all, "the industry has a gross slacker," said ploss. "The business climate for infineon is getting tougher."In the current quarter, he expects a drop in sales of at least ten percent and a halving of the profit margin. Things were only allowed to get better from april onwards. For the 2013 fiscal year as a whole, ploss predicted a drop in sales to a rough order of 3.6 billion euros and a halving of operating profit to approximately 250 million euros.

However, infineon plans to pay shareholders an unchanged dividend of 12 cents in february. Share price rose sharply on wednesday, with the stock topping the DAX. Infineon plans to offer more package solutions from a single source in order to strengthen customer loyalty. "Infineon is moving away from being a supplier of individual components to becoming an expert for complete solutions," said ploss. "In five years, infineon is set to become the leading supplier of systems solutions."

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