MUNICH (Reuters) – As previously announced, the chip group Infineon is raising its sales and profit forecast for the current financial year in view of increasing demand from the automotive industry.
Infineon announced on Thursday in Neubiberg near Munich that sales will increase by around 14 percent to 16.2 billion euros in 2022/23 (as of the end of September). That would be around 700 million more than previously planned. The operating return on sales (segment result margin) should also be higher than expected at around 27 (previously: 25) percent. Infineon is assuming a higher dollar exchange rate of EUR 1.10 (instead of 1.05). The $830 million takeover of Canadian GaN Systems, a manufacturer of innovative power semiconductors, is not yet included in the forecast.
“Our businesses related to electromobility, renewable energy generation and energy infrastructure are developing strongly,” said CEO Jochen Hanebeck. On the other hand, chips for smartphones, PCs and household appliances are still not showing any sign of an upswing. Industry trends are likely to continue through the end of the fiscal year. “Overall, however, we are very confident about Infineon’s further business development.” The group had already announced an increase in the forecast at the end of March, but did not quantify it.
In the second quarter, Infineon again posted a profit in the billions with a segment result of 1.18 billion euros. At 4.12 billion euros, sales were four percent higher than in the first quarter, driven by business with car manufacturers and industry. For the current third quarter (April to June), Infineon is assuming slightly lower sales of around four billion euros due to the less favorable dollar exchange rate. At 26 percent, the segment result margin will also be slightly lower than last time. Between January and March it was 28.6 percent, well above its own expectations.
(Report by Alexander Hübner, edited by Myria Mildenberger. If you have any questions, please contact our editorial team at [email protected] (for politics and the economy) or [email protected] (for companies and markets).)
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