Chipmaker Infineon has posted a bigger-than-expected operating loss for its fiscal third quarter but said it expected the fourth quarter to be better as prices stabilised.
Infineon's earnings before interest and tax loss doubled to €234 million ($282 million) from the previous quarter as the company said price erosion for memory chips, its main business, had been more severe than expected.
The figure included a charge of €81 million, mainly in connection with the phasing out of a plant in Munich and impairment charges for the Communications unit.
Infineon said it expected memory-chip prices to stabilise in the fourth quarter in a balanced supply-and-demand environment.
Chief Executive Wolfgang Ziebart said in a statement: "We expect an improved fourth quarter compared to the third quarter."
But he did not reiterate Infineon's target to break even on an operating level over the full fiscal year to September, a target he has already said would be very hard to reach.