In the past quarter, revenues improved by a third compared to the previous year.
(Photo: dpa)
Munich After a sales increase in the third quarter, the chip manufacturer Infineon is more optimistic about the year as a whole. In the fiscal year that ends at the end of September, the Munich-based company is now expecting sales of around 14 billion euros – that’s half a billion euros more than previously expected. The segment result margin is expected to be more than 23 percent, Infineon announced on Wednesday.
Rising raw material prices, energy costs and interest burdened the economic growth, said Infineon boss Jochen Hanebeck; Demand has weakened in some consumer-related end markets. “We are closely monitoring market developments and are prepared to act immediately. However, the structural drivers of decarbonization and digitalization continue to ensure a high demand for semiconductors.”
Infineon primarily manufactures power semiconductors that are used in the automotive industry, for example, but also in power generators and in industry.
In the past quarter, revenues improved by a third compared to the previous year to 3.6 billion euros and were therefore above analysts’ expectations. At EUR 842 million, the segment result was 70 percent higher than a year earlier. The shares gained two percent in early trading in Frankfurt.
Top jobs of the day
Find the best jobs now and
be notified by email.
The group benefits from the global lack of chips, which drives up prices, and the weak euro. The common currency has lost significantly in value against the dollar, which means that Infineon’s profits and sales are higher. The currency effect alone should drive sales up by 140 million euros for the year as a whole. Since the takeover of US rival Cypress, Infineon has generated a large part of its revenues in US currency.
The rival STMicro had also recently presented sales above analyst expectations and raised its forecast.
More: Two-year delivery period: Lockdowns in China are driving chip customers to despair