Nokia Oyj, Siemens AG and Infineon Technologies AG are among technology companies that analysts forecast to report rising profits this week as customers increase spending on telecommunications equipment and computers.
Infineon, Europe's No. 2 maker of semiconductors, probably will report a second straight quarterly profit today, a survey of analysts showed. Nokia, the world's biggest mobile-phone maker, and Siemens, Germany's largest engineering company, will probably say earnings rose when they report results on Thursday. SAP AG is likely to report a decline in profit the same day, after the dollar's decline eroded revenue from the US
Nokia, based in Espoo, Finland, said earlier this month that quarterly revenue and profit beat its own forecasts as phone companies such as TeliaSonera AB boosted orders after cutting spending for two years.
Chipmakers such as Infineon may also benefit as companies boost spending on computers and communications equipment. Personal computer shipments rose 12 percent in the fourth quarter, Gartner Inc. said last week.
"Business fundamentals are sound and solid and will become even more sound and solid as the year progresses," Doug Dunn, chief executive at ASML Holding NV, Europe's largest maker of semiconductor equipment, told a press conference on Thursday.
Infineon's net income probably reached 27 million euros (US$34 million) in the fiscal first quarter ended in December, according to the median estimate of seven analysts in a Bloomberg News survey. Munich-based Infineon had a loss of 40 million euros a year earlier. Revenue probably rose 9.1 percent to 1.66 billion euros, according to the analyst survey.
Growing demand for chips used in mobile phones and computers, increased spending by wireless network operators and cost reductions may also make up for the effects of the dollar's slide against the euro, said investors including Torsten Gruendel, who helps manage US$23 billion at Cominvest/Adig Investment in Frankfurt.
The dollar has dropped about 15 percent against the euro in the past year, falling 7.5 percent in the last three months of 2003 alone.
Infineon, second behind STMicroelectronics NV among European semiconductor makers, will release results before the Frankfurt stock exchange opens today and hold a conference call for the press at noon and for investors at 2pm.
The company plans to hold its annual general meeting in Munich tomorrow.
Intel Corp., the world's biggest chipmaker, said last week that fourth-quarter profit more than doubled to US$2.17 billion as sales climbed to US$8.74 billion from US$7.16 billion a year earlier.
It was the company's biggest quarterly profit since 2000. ASML last week posted its first profit in six quarters.
"Intel and ASML gave very good numbers," said Theo Kraan, who manages about US$2.47 billion at CenE Bankiers in Utrecht, the Netherlands, including ASML stock. "Recovery is clearly here." Nokia may predict an increase of 5 percent in first-quarter revenue, the biggest increase in 11 quarters, a survey of seven analysts by Bloomberg News showed. It may predict first-quarter net income of 21 euro cents a share, compared with 20 euro cents a year earlier, the survey showed.
Two weeks ago Nokia said fourth-quarter net income rose to 24 euro cents to 25 euro cents a share from 22 euro cents a year earlier, beating its earlier guidance. It also said sales were little changed at 8.8 billion euros.
Chief Executive Officer Jorma Ollila has reorganized the company into smaller units to target specific types of users amid saturating phone markets, falling network demand and competition from the likes of Motorola Inc.
The company has also faced growing competition from Siemens, which boosted its share of the global handset market to 9.1 percent in the third quarter from 7.4 percent a year earlier, according to market researcher Gartner.
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