UPDATE 2 - Chartered Semi lowers outlook, cuts costs

UPDATE 2 - Chartered Semi lowers outlook, cuts costs

Reuters - Friday, December 12SAN FRANCISCO, Dec 11 - Contract chip maker Chartered Semiconductor Manufacturing Ltd lowered its fourth-quarter forecast (Outlook for fourth quarter here & third quarter here) on Thursday and said it would cut contracting jobs in a move to reduce costs.

The company said it slashed 273 contract positions in Singapore this week, has eliminated overtime, and will "selectively" shut down part of its operations during the Christmas holiday week.

In addition, Chartered will temporarily cut salaries by 5 to 20 percent based on job grades. It employs 6,800 people around the world.

A company spokeswoman said via email that the company has been "limiting its headcount expansion in the past year, instead leveraging overtime."

In lowering its fourth-quarter outlook, the Singapore-based chip foundry said its customers are postponing their deliveries due to weak market conditions and their intent to keep inventories low.

For the December quarter, Chartered now expects revenue of $343 million to $353 million and a net loss of 30 to 33 cents per basic American Depositary Share.

Wall Street had expected revenue of $360 million to $370 million and a loss of 22 cents to 25 cents a share, according to analysts polled by Reuters Estimates.

State-controlled Chartered competes with China's Semiconductor Manufacturing International Corp (from wiki) <0981.hk>, Taiwan Semiconductor Manufacturing Co Ltd (from wiki )<2330.tw> and United Microelectronics Corp (from wiki) <2303.tw> in the market for custom-built microchips.

Chartered's U.S.-listed shares closed the regular session down 5 cents, or 4 percent, at $1.20.

- http://sg.news.yahoo.com/rtrs/20081212/tap-chartered-semi-outlook-c3bb44c.html

-http://www.forbes.com/afxnewslimited/feeds/afx/2008/12/11/afx5812776.html

- wong chee tat :)