Micronas reports increased sales and earnings

Micronas supplies chips to such companies as Samsung, Sony and Sharp Keystone

The Swiss semiconductor company Micronas said on Wednesday that it had seen a “rapid recovery” in business in the third quarter.

The Zurich-based company reported that net income had risen by 25.7 per cent to SFr21.5 million ($16.3 million), compared with the previous quarter.

The news sent its share price soaring by more than 15 per cent to SFr52.50, well up on Tuesday’s close of SFr45.40.

Micronas, which makes chips used in the consumer electronics, multimedia and automotive electronics industries, said that net sales in the third quarter rose by an unexpected 26.4 per cent to SFr200.4 million.

Compared with the first nine months of 2002, sales were 5.3 per cent higher at SFr550.2 million, the company said.

Good performance

Micronas said both core business divisions – consumer and automotive – contributed to the good performance.

It commented that the third quarter was traditionally a strong sales period for the consumer division as the market geared up for Christmas.

The automotive division also made “pleasing progress”, despite the fact that the international automotive market had yet to turn the corner.

The company’s statement said that the outlook for the business year as a whole promised an increase in sales compared with 2002, and was likely to be in the mid-single-digit percentage range.

It added that net profit as a percentage of net sales was likely to be in the higher single-digit range.

Micronas reported a 2002 net profit of just over SFr66 million on sales of SFr707.4 million.

swissinfo with agencies

Key facts

Micronas has reported a better-than-expected net income increase of 25.7 per cent in the third quarter to SFr21.5 million.
Sales were up over the second quarter by 26.4 per cent to SFr200.4 million.
The company expects a full-year net profit margin on sales to be in the higher single-digit percentage range.