Semiconductor maker Infineon Technologies AG on Wednesday reported a wider second-quarter loss because of a weak performance from memory-chip unit Qimonda AG. It was Infineon's fifth consecutive quarterly loss.
The Neubiberg-based company lost nearly 1.4 billion euros ($2.2 billion) in the January-March period, compared with a loss of 11 million euros a year earlier. The figure was dragged down by a 482 million euros ($767.9 million) loss from Qimonda.
Without Qimonda, in which Infineon holds a majority stake, Infineon said it would have posted a 19 million euro ($30.3 million) profit.
CEO Wolfgang Ziebart said Infineon will reduce its 77.5 percent stake in Qimonda to a minority holding and that it would write down its holding in the company by 1 billion euros ($1.6 billion). He said Infineon has listed Qimonda as an asset held for sale.
Infineon's shares were up 5.8 percent at 5.44 euros ($8.67) in Frankfurt.
Despite the drag on net profit, the company's sales rose 7 percent to 1.05 billion euros ($1.7 billion) in the second quarter from 978 million euros a year earlier.
Ziebart also said that if the euro which topped $1.60 for the first time on Tuesday continues to strengthen through 2009, it will hurt Infineon's pretax profit by nearly 120 million euros ($191.2 million).
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