Chartered bets on recovery
Chartered Semiconductor Manufacturing Co, the world's third-biggest made-to-order chip maker after Taiwan Semiconductor Manufacturing Co and United Microelectronics Corp, predicted that its third-quarter loss will narrow from the second, and said the industry is recovering. It expects a loss of about US$83 million, compared with the loss of US$90 million it reported today for the second quarter, which matched its result from the year-earlier period. Second- quarter sales were also little changed. Chartered Semiconductor has been unprofitable for 10 straight quarters. Third-quarter sales are expected to increase by 3 percent to 7 percent from the second quarter to about US$134 million, the company said. In the third quarter last year, Chartered lost US$89 million on sales of US$130 million.
Eriscsson posts loss
Swedish telecommun-ications equipment maker Ericsson yesterday posted a loss for the second quarter of the year after taxes of 2.7 billion kronor (US$328 million). Although it was the ninth consecutive quarterly loss for Ericsson, the second quarter result was considerably better than market analysts had predicted. The embattled mobile phone maker posted a loss of 3.1 billion kronor in the second quarter of last year. Second quarter sales amounted to 27.6 billion kronor, down 28 percent compared with the same period last year. But compared with the first quarter of the year, when sales were put at 25.9 billion kronor, the second quarter marked a significant improvement. Ericsson President and CEO Carl-Henric Svanberg said that despite the long string of losses, the company remained "determined to return to profit during 2003."
Boeing cuts 5,000 jobs
The Boeing Co's commercial aeroplanes division Thursday announced the loss of an additional 4,000 to 5,000 jobs by the end of the year. The reason for the cuts is due to continued weakness in the commercial airline industry, the company said in a release. The reductions will be accomplished through layoffs and attrition, and pink slips were to be handed out yesterday to 660 employees. Alan Mulally, Boeing Commercial Airplanes president and chief executive officer, said in the release that Boeing was experiencing an unprecedented and difficult time. The company has laid off 40,000 people since the terrorist attacks on Sept. 11, 2001.
Windows flaw admitted
Microsoft Corp acknow-ledged a critical vulner-ability Wednesday in nearly all versions of its flagship Windows operating system software, the first such design flaw to affect its latest Windows Server 2003 software. Microsoft said the vulnerability could allow hackers to seize control of a victim's Windows computer over the Internet, stealing data, deleting files or eavesdropping on e-mails. The company urged customers to immediately apply a free software repairing patch available from Microsoft's Web site. The disclosure was unusually embarrassing for Microsoft because it demonstrated the first such serious flaw in the company's powerful new computer server software, billed as its safest ever. The software is aimed at large corporate customers.