Sat, Jan 27, 2007 - Page 11 News List

Singapore contract chip maker's profits plummet 76 percent

AFP , SINGAPORE

Chartered Semiconductor Manufacturing Ltd's (特許半導體) net profit slumped an annual 76 percent in the fourth quarter, weighed down by weaker sales, the Singapore contract chip maker said yesterday.

For the three months ending last month, net profit totaled US$6.43 million compared with US$26.53 million a year ago, while revenues were US$339.13 million, down 7.6 percent from US$367.21 million, the company said in a statement.

Analysts had projected the company, one of the world's biggest chip foundries, would earn a net profit of US$3.98 million to US$8 million during the fourth quarter.

During the quarter, Chartered's shipments of wafers fell 6.1 percent to 295,500 down from 314,800. They sold at an average price of US$1,135 per piece, down from US$1,136, the company said.

For the full financial year to last month, record revenues swung Chartered back into the black with net profit of US$68.18 million against a loss of US$159.6 million.

The company earned its biggest ever revenues totaling US$1.41 billion in the year to last month, up 37 percent from US$1.03 billion in the previous financial year.

"We posted record revenues in 2006 ... with our expanding business and corresponding revenue growth, we were able to achieve a net income of 68 million for 2006, moving from the loss position in the previous year," president and CEO Chia Song Hwee (謝松輝) said.

Looking ahead to the current year, Chartered projects revenues in the first quarter will weaken to between US$318 million and US$330 million.

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