Chartered Semiconductor sees strong 2Q results

Chartered Semiconductor said late Thursday it will report better-than-expected sales and earnings in its second quarter.

Company officials credited the upside surprise to a combination of accelerated productivity improvements in manufacturing operations, a higher average selling price due to better mix and enhanced pricing, and higher wafer shipments.

Chartered (Nasdaq: CHRT) shares closed off 5 1/16 to 84 1/8 ahead of the announcement.

It now expects its second-quarter sales to improve 10 percent from the $238.4 million it recorded in the first quarter while net income should improve between 4 percent to 5 percent.

Last quarter, it posted a profit of $37.8 million, or 29 cents a share, after preannouncing better-than-expected sales.

Chartered expects earnings in the third quarter and fourth quarter of 2000 will be flat with second quarter despite the burden of the Fab 6 and Fab 7 start-ups.

The Singapore-based chip foundry watched its shares move up to a 52-week high of 113 in March after falling to a low of 28 7/8 in October.

Analysts are expecting it to earn 22 cents a share in the second quarter.