Infineon closes December quarter with revenue down as forecast and earnings slightly better than expected. Slowing global economic momentum dampens outlook: revenue predicted to remain stable in March quarter
February 05, 2019 at 01:44 am EST
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Q1 FY 2019: revenue €1,970 million, seasonal quarter-on-quarter decrease of 4 percent; Segment Result €359 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 €100 million and €200 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.'
For the full version of this news release (incl. financial data), please download the PDF version (see downloads below)
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Infineon Technologies AG published this content on 05 February 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 05 February 2019 06:43:03 UTC
Infineon Technologies AG is one of the world's leading manufacturers of semiconductors. The group's products include power semiconductors, sensors, microcontrollers, digital, mixed-signal and analog ICs, discrete semiconductor modules, switches, interface ICs, motor-controlling ICs, RF power transistors, voltage regulators, and electronic safety components. Net sales break down by area of activity as follows:
- automotive (50.5%): semiconductor products used in the automotive industry, and memory products for specific applications for automotive, industrial, information technologies, telecommunications and consumer electronics.
- power & sensor systems (23.3%): semiconductors for energy-efficient power supplies, mobile devices, mobile phone network infrastructures, human-machine interaction as well as applications with special demands on their robustness and reliability.
- industrial power control (13.5%): semiconductor products for the conversion of electrical energy for small, medium and high-power applications, used in the manufacturing, the low-loss transmission, the storage and the efficient use of electrical energy;
- connected secure systems (12.6%): semiconductors for networked devices, card-based applications, and government documents; microcontrollers for industrial, entertainment, and household applications, components for connectivity systems, various customer support systems;
- other (0.1%).
Net sales are distributed geographically as follows: Germany (12.4%), Europe/Middle East/Africa (14.4%), China/Hong Kong/Taiwan (32.3%), Japan (10.5%), Asia/Pacific (15.9%), the United States (12.1%) and Americas (2.4%).
Infineon closes December quarter with revenue down as forecast and earnings slightly better than expected. Slowing global economic momentum dampens outlook: revenue predicted to remain stable in March quarter