German semi-conductors maker Infineon issued a profit warning today.
It said its third-quarter business performance was being hit by a further deterioration in market conditions and that the company might post a loss for the whole year.
Infineon, which works on a business year from October to September, predicted sales in the three months to June would shrink by 30 per cent compared with the figure for the preceding three months.
"Our third-quarter business will be significantly affected by worsened semiconductor market conditions," Infineon said.
Infineon, one of the leading makers of memory chips and chips used in mobile phones, said it would cut capital spending by more than euro one billion next year.
The profit warning sparked a heavy sell-off in Infineon shares in Frankfurt.
Infineon hit an intraday low of euro 30.22 this morning, a loss of euro 4.73 euros or 13.5 per cent from the closing price yesterday.
AFP