The business of the Munich semiconductor manufacturer is excellent, the factories are working at full capacity.
(Photo: Bloomberg)
Munich The start was successful: Jochen Hanebeck is at the helm of Infineon with good numbers. The Dax group announced on Monday that sales in the past quarter had increased by 22 percent to around 3.3 billion euros. The bottom line was a profit of 469 million euros, more than twice as much as in the same period last year. The operating margin was 23 percent. Germany’s largest chip manufacturer has thus exceeded its own forecast.
“Our business continues to do well in an increasingly demanding environment,” said Hanebeck. The previous production director took over the post on April 1 from the long-standing chairman of the board Reinhard Ploss. At the same time, the manager warns: “Global uncertainties are putting a strain on the supply chains, especially the war in Ukraine and the further course of the coronavirus pandemic.”
The chip shortage is not over
As has been the case for more than a year, Infineon cannot deliver as much as customers order. Above all, the contract manufacturers in the Far East cannot keep up with production. However, Hanebeck apparently does not rule out an end to the boom. “We monitor the short and medium-term market and delivery conditions very closely in order to be able to react if necessary,” added the manager.
Specifically, Hanebeck is concerned about possible energy supply restrictions in connection with the Ukraine war. In Europe, Infineon operates large plants in Dresden and Villach. In addition, the effects of the lockdowns in China are unclear, although Infineon does not expressly mention the People’s Republic in its announcement.
Top jobs of the day
Find the best jobs now and
be notified by email.
Not only Infineon is growing strongly, the entire chip industry has been booming for almost two years now. The digitization of everyday life and electromobility ensure record sales for the corporations.
The new Infineon boss presented the figures for the first time.
(Photo: dpa)
Infineon’s competitors have recently been less skeptical than the Munich company. “Overall, demand continues to outstrip increased supply and inventories in all end markets remain very thin,” said NXP CEO Kurt Sievers.
Infineon expects half a billion more sales
“Demand exceeds capacity by 30 to 40 percent,” said STMicroelectronics CEO Jean-Marc Chery. Today’s orders are already sufficient to keep the French-Italian company’s plants busy for almost the whole of next year. Incoming orders are strong and the increase in sales of up to 20 percent forecast for 2022 at the beginning of the year is realistic.
Despite all the uncertainties, Hanebeck increased the forecast on Monday. Sales are now expected to increase to 13.5 billion euros in the current fiscal year, which ends on September 30th. Infineon had previously expected 13 billion euros. The operating margin should be more than 22 percent, so far the group was aiming for 22 percent. It is the second time in the current financial year that the company has raised its forecast.
The share prices of almost all chip manufacturers have fallen sharply in recent months despite good numbers. Infineon shares have lost around a third of their value since the beginning of the year.
More: The chip paradox: why business is booming and stock prices are suffering.