DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results/Forecast
- Q1 FY 2019: REVENUE EUR1,970 MILLION, SEASONAL QUARTER-ON-QUARTER DECREASE OF 4 PERCENT; SEGMENT RESULT EUR359 MILLION; SEGMENT RESULT MARGIN 18.2 PERCENT - OUTLOOK FOR Q2 FY 2019: BASED ON AN ASSUMED EXCHANGE RATE OF US$ 1.15 TO THE EURO, REVENUE STABLE QUARTER-ON-QUARTER (PLUS OR MINUS 2 PERCENTAGE POINTS) AND SEGMENT RESULT MARGIN OF 16 PERCENT AT MID-POINT OF REVENUE GUIDANCE - OUTLOOK FOR FY 2019: GIVEN DEVELOPMENTS IN THE FIRST TWO QUARTERS, REVENUE GROWTH NOW EXPECTED AT THE LOWER END OF THE FORECAST RANGE, WHICH CORRESPONDS TO YEAR-ON-YEAR GROWTH OF 9 PERCENT AT AN ASSUMED EXCHANGE RATE OF US$ 1.15 TO THE EURO. AT THIS REVENUE LEVEL, THE SEGMENT RESULT MARGIN SHOULD COME IN AT ABOUT 17.5 PERCENT - INVESTMENTS IN FY 2019: PLANNED INVESTMENTS TO BE REDUCED BY BETWEEN EUR100 MILLION AND EUR200 MILLION IN LIGHT OF SLOWER RATE OF GROWTH Neubiberg, Germany, 5 February 2019 - Infineon Technologies AG today reports results for the first quarter of the 2019 fiscal year (period ended 31 December 2018). "So far we have been able to master the challenges of an increasingly difficult business environment well," stated Dr. Reinhard Ploss, CEO of Infineon. "Despite market headwinds, we expect to be able to grow by about 9 percent in the 2019 fiscal year and gain further market share on the back of healthy structural growth drivers. Our long-term growth prospects remain intact. We will therefore continue to pursue core projects such as the construction of the 300-millimeter cleanroom in Villach, but moderately reduce investments in manufacturing equipment."
1 The calculation for earnings per share and for adjusted earnings per share is based on unrounded figures. 2 The reconciliation of net income to adjusted net income and adjusted earnings per share as well as of cost of goods sold to adjusted cost of goods sold and adjusted gross margin can be found in the quarterly information at www.infineon.com. With effect from the beginning of 2019 fiscal year, Infineon is applying IFRS 15 (Revenue from Contracts with Customers) and IFRS 9 (Financial Instruments) using the modified retrospective approach. As a result, prior periods are not adjusted to the new accounting policies. Overall, the first-time application of these Standards has not had any material impact.
The gross margin remained largely stable quarter-on-quarter, falling from 39.8 percent to 39.5 percent. Included therein are acquisition-related depreciation and amortization as well as other expenses totaling EUR16 million, mainly relating to the International Rectifier acquisition. The adjusted gross margin also remained virtually unchanged, coming in at 40.4 percent in the first quarter compared with 40.6 percent in the final quarter of the 2018 fiscal year. The Segment Result for the first quarter of the current fiscal year amounted to EUR359 million, down from EUR400 million one quarter earlier. The Segment Result Margin decreased from 19.5 percent to 18.2 percent. The non-segment result for the three-month period was a net loss of EUR32 million, compared to a net loss of EUR30 million in the previous quarter. The first-quarter non-segment result comprises EUR16 million of cost of goods sold, EUR15 million of selling, general and administrative expenses, and EUR1million of research and development expenses. Operating income in the first quarter totaled EUR327 million, compared to the previous quarter's EUR370 million. Income tax expense increased slightly from EUR54 million to EUR56 million. Income from continuing operations totaled EUR254 million, compared with EUR300 million in the fourth quarter of the 2018 fiscal year. The result from discontinued operations for the first three months of the 2019 fiscal year was zero. In the previous quarter, the increase in provisions relating to the lawsuit brought by the Qimonda insolvency administrator for the alleged activation of a shell company and the liability for the impairment of capital had resulted in a net loss of EUR159 million. Net income improved accordingly from EUR141 million in the previous quarter to EUR254 million in the first quarter of the 2019 fiscal year. Earnings per share from continuing operations for the first quarter of the current fiscal year amounted to EUR0.22 (basic and diluted), down from EUR0.27 one quarter earlier. Adjusted earnings per share[1] (diluted) declined from EUR0.28 to EUR0.24. Investments - which Infineon defines as the sum of purchases of property, plant and equipment, purchases of intangible assets and capitalized development assets - decreased slightly in the first quarter of the current fiscal year to EUR408 million, down from EUR417 million in the previous three-month period. Depreciation and amortization increased slightly from EUR226 million to EUR230 million. Free cash flow from continuing operations amounted to minus EUR221 million, compared to a positive EUR227 million in the preceding quarter. The figure reported for the first three months of the current fiscal year includes an outflow of EUR123 million arising in conjunction with the acquisition of Siltectra in November 2018. Net cash provided by operating activities from continuing operations totaled EUR310 million, compared to EUR641 million in the fourth quarter of the 2018 fiscal year. The gross cash position at the end of the first quarter of the 2019 fiscal year amounted to EUR2,306 million, compared to EUR2,543 million at 30 September 2018. The net cash position amounted to EUR773 million, compared to EUR1,011 million three months earlier. OUTLOOK FOR THE SECOND QUARTER OF THE 2019 FISCAL YEAR OUTLOOK FOR THE 2019 FISCAL YEAR Investments in property, plant and equipment, intangible assets and capitalized development costs are now planned at approximately EUR1.5 billion for the 2019 fiscal year, compared to the previously forecast range of EUR1.6 to 1.7 billion. The figure continues to include the construction of the cleanroom for the new 300-millimeter production facility in Villach. Depreciation and amortization are still expected to be in the region of EUR1 billion, whereby approximately EUR90 million of that amount relates to amortization resulting from purchase price allocations, primarily for International Rectifier. Infineon's segments' performance in the first quarter of the 2019 fiscal year can be found in the quarterly information at www.infineon.com. All figures in this quarterly information are preliminary and unaudited. ANALYST TELEPHONE CONFERENCE AND PRESS TELEPHONE CONFERENCE The Q1 Investor Presentation is available (in English only) at: http://www.infineon.com/cms/en/corporate/investor/reporting/ INFINEON FINANCIAL CALENDAR (* preliminary) - 21 Feb 2019 Annual General Meeting, Munich - 25 - 27 Feb 2019 Mobile World Congress; Barcelona - 14 Mar 2019 Bryan, Garnier & Co. 4th Annual Technology Conference, Paris - 5 Apr 2019 Bankhaus Lampe Conference, Baden-Baden
- 7 May 2019* Earnings Release for the Second Quarter of the 2019 - 8 May 2019 PCIM trade show; IPC Business Update by Dr. Peter Wawer, Division President IPC and Dr. Peter Friedrichs, Technology Development Silicon Carbide, Nuremberg - 4 Jun 2019 Equita 14th European Conference, Milan - 4 Jun 2019 Berenberg Innovation Conference, Zurich - 5 Jun 2019 Deutsche Bank German, Swiss & Austrian Conference, Berlin - 11 Jun 2019 Exane 21st European CEO Conference, Paris
- 1 Aug 2019* Earnings Release for the Third Quarter of the 2019 - 29 Aug 2019 Commerzbank Sector Conference, Frankfurt - 23 Sep 2019 Berenberg Goldman Sachs German Corporate Conference, Unterschleißheim nearby Munich - 24 Sep 2019 Baader Investment Conference, Munich - 7 - 8 Oct 2019 ATV Presentation by Peter Schiefer, Division President ATV, London
- 12 Nov 2019* Earnings Release for the Fourth Quarter and the 2019 ABOUT INFINEON
Further information is available at www.infineon.com Follow us:Twitter - Facebook - LinkedIn D I S C L A I M E R These statements are based on assumptions and projections resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks. Actual business development may therefore differ materially from what has been expected. Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements.
Due to rounding, numbers presented throughout this press release and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. Contact: Bernd Hops, Media Relations, phone: +49 89 234-24123, fax: +49 89 234-154123
05.02.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | Infineon Technologies AG |
Am Campeon 1-15 | |
85579 Neubiberg | |
Germany | |
Phone: | +49 (0)89 234-26655 |
Fax: | +49 (0)89 234-955 2987 |
E-mail: | investor.relations@infineon.com |
Internet: | www.infineon.com |
ISIN: | DE0006231004 |
WKN: | 623100 |
Indices: | DAX, TecDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
End of News | DGAP News Service |
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