The semiconductor group is even more optimistic for the final quarter and increased its annual forecast when the nine-month figures were presented, as it announced in Neubiberg near Munich. It is the third increase in annual targets. Infineon is now targeting sales of around EUR 14 billion (previously: EUR 13.5 billion) and a segment result margin of more than 23 percent (previously: over 22 percent). At EUR 1.4 billion, free cash flow is also expected to be EUR 300 million higher than previously.
The operating profit for the months of April to June – the so-called segment result – reached 842 million euros and was thus 11 percent above the value of the previous quarter (761 million euros), as the semiconductor group announced. With sales of 3.6 billion euros – an increase of 10 percent – this corresponds to a margin of 23.3 (previous quarter: 23.1) percent. Infineon has thus exceeded its targets.
On average, analysts had expected sales of EUR 3.424 billion and a segment result of EUR 727 million.
“In a difficult general weather situation, Infineon is still on the right track thanks to its differentiated portfolio,” said the new CEO Jochen Hanebeck. “Demand has recently been weaker in some consumer-related end markets. We are monitoring market developments closely and are prepared to act immediately.”
In the fourth quarter, Infineon expects sales of around EUR 3.9 billion and a segment result margin of around 25 percent at an average euro/dollar exchange rate of 1.05.
Infineon boss sees signs of a possible downturn in the chip industry
The new Infineon CEO sees the recently weaker demand in some consumer-related end markets as a harbinger of an upswing phase that may be ending overall: “It seems that we are approaching the end of a long upswing,” said Jochen Hanebeck in the telephone press conference on the third-quarter figures. However, the manager assumes that the various sub-markets of the chip industry will develop very differently.
Demand for personal computers, smartphones, household appliances and battery-powered devices is already declining, said Hanebeck. On the other hand, structural growth is to be expected in the automotive, energy and data center sectors.
When asked what all this means for his company, Hanebeck added that he would not be making any forecasts for Infineon’s new fiscal year, which begins in October, but would, as usual, wait until the balance sheet was presented in November. However, one has an eye on all the indicators that are important for market development and will react immediately if necessary – for example in the case of investments and new hires. However, Infineon will fully implement the investment budget of EUR 2.4 billion planned for the current financial year.
The new plant in Kulim, Malaysia, which was announced in February, is also not available – especially since significant sales are not expected there until 2025: With the semiconductor materials silicon carbide and gallium nitride, which are to be used there for the production of more energy-efficient power semiconductors, “we will continue to work on the Stay on the gas pedal,” says Hanebeck.
At times, the Infineon share gained 2.74 percent via XETRA to EUR 27.19.
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