Jun 11, 2008
Chartered cuts Q2 gross profit forecast
By Jennifer Tan
SINGAPORE (Reuters) - Chartered Semiconductor Manufacturing warned on Tuesday its second-quarter gross profit would be almost a fifth below its earlier guidance due to higher costs, but kept its net profit forecast thanks to a tax writeback.
In contrast to its bigger Taiwanese rivals TSMC and UMC , Chartered is struggling with rising costs and falling profitability amid sluggish demand.
Analysts say Chartered could benefit from being acquired by a larger rival or merging with a peer to increase scale and broaden its customer base. The company said last month it was open to strategic investors.
Comments
Please note by clicking on "Post Comment" you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

