2nd-quarter Loss Narrows For Germany's Infineon

Infineon said sales dropped in the second quarter at divisions including its chip card, security, and wireline communications. However, they rose at the wireless solutions division.

Infineon makes components for sectors including the car industry and telecommunications.

"Strategically, Infineon is positioned well," chief executive Peter Bauer said.

However, he added that "in this challenging environment, we further need to have a tight grip on expenses."

Infineon said it had saved about euro60 million in the second quarter, largely in operating expenses.

It said it had also made progress on previously announced staff reductions, as the payroll now stands at around 26,400 people — compared with 29,100 at the end of September 2008.

Infineon said it would also reduce capital expenditure for the current year to between euro170 and euro190 million, compared with the euro370 million it spent in 2008.

Shares of Infineon were only slightly higher at euro1.90 in Frankfurt morning trading.