Chartered Semiconductor Manufacturing
cut its earnings and revenue forecasts for the first quarter because of the weakening economic environment and market conditions.
"While we had previously noted that economic conditions were impacting order rates, in recent weeks we have seen a more severe decline than anticipated," the company said in a statement. "The weakness has now become quite broad, impacting essentially all major end-market segments and geographies as companies continue to work off high inventories while also adjusting to lower end-market demand levels."
The supplier of chips to the telecommunications industry said it expects revenue to decline 35% sequentially, wider than its previous forecast of a 15% to 20% decline. Chartered expects to lose between 22 cents and 24 cents per American depositary share. The company had previously forecast a profit of 4 cents to 6 cents per ADS. Five analysts polled by
First Call/Thomson Financial
were calling for the company to earn 5 cents in the period. Chartered earned 29 cents a year ago.
Chartered reported revenue of $318.7 million for the fourth quarter and a top line of $1.13 billion for the year.
The company, which is based in Singapore, said it was difficult to provide an outlook for the remainder of 2001 because of near-term uncertainty. But, the company said revenue in the second half of 2001 should be up from the first half. Chartered expects to report financial results on April 20.
When Chartered reported fourth-quarter results in January, the company said it expected revenue to grow 12% to 18% for the year, with the first quarter being the weakest. The company said earnings for the year should be $1 to $1.20, well below the consensus estimate of $1.49 at the time.
Shares of Chartered fell $1.19, or 3.7%, to $31.06 in recent
trading, but plunged to $25.44 in recent after-hours