Info
Info

Infineon Announces Strong Q2

News

Automotive and industrial power control segments reporting significant growth

Infineon Technologies has reported results for the second quarter of the 2018 fiscal year (period ended 31 March 2018) with revenue €1,836 million, which is up 3 percent on the previous quarter .

“Infineon continues to grow profitably," stated Reinhard Ploss, CEO of Infineon. "Our growth is broadly based: Solutions for the entire range of drivetrain systems for all types of electric vehicles, including 48-volt systems, high-speed trains and renewable power generation. In addition, we are seeing growing demand for data centre power supplies for artificial intelligence. Our order books are bulging. We therefore are very confident that we will achieve our revenue targets for the 2018 fiscal year.

“Compared to the previous year’s March quarter, the average US dollar exchange rate against the euro fell by around 16 percent in the three-month period to 31 March 2018. Despite headwinds from the US dollar and rising material prices, we expect to achieve our targeted Segment Result Margin of 17 percent again in the 2018 fiscal year. This demonstrates the robustness of our business model," continued Ploss.

Quarter-on-quarter, revenue grew by 3 percent to €1,836 million in the second threemonth period of the 2018 fiscal year. Revenue in the first quarter amounted to €1,775 million. The Automotive (ATV) and Industrial Power Control (IPC) segments reported significant growth, while the Power Management & Multimarket (PMM) and Chip Card & Security ( (CCS) segments remained almost unchanged compared to the preceding quarter.

The gross margin for the three-month period under report came in at 37.1 percent, compared to 36.4 percent in the first quarter. These figures include acquisition-related depreciation and amortisation and other expenses totaling €16 million, mainly relating to the International Rectifier acquisition.

The adjusted gross margin amounted to 38.0 percent, up from the 37.4 percent recorded in the first quarter of the 2018 fiscal year. The second-quarter Segment Result rose to €314 million, up from €283 million in the previous quarter. The Segment Result Margin improved from 15.9 percent to 17.1 percent.

The non-segment result in the second quarter was a net profit of €218 million, compared to the net loss of €35 million reported one quarter earlier. The second-quarter figure includes a pre-tax gain of €268 million, which arose on the sale of the major part of Infineon’s RF power business to Cree Inc., USA.

Outlook for Q3

Based on an assumed exchange rate of $1.25 to the euro, Infineon forecasts third quarter revenue growth of 3 percent (plus or minus 2 percentage points). At the midpoint of the revenue guidance, the Segment Result Margin is expected to come in at about 17 percent.

Outlook for 2018

Based on an assumed exchange rate of $1.25 to the euro, Infineon now expects year-on-year revenue growth of between 4 and 7 percent for the 2018 fiscal year. Previously, an increase of approximately 5 percent (plus or minus 2 percentage points) had been expected. The average EUR/USD exchange rate during the 2017 fiscal year was 1.11 and thus more favourable for Infineon’s revenue and earnings performance than the exchange rate of 1.25 now assumed. At an unchanged exchange rate of 1.11, expected year-on-year growth would be significantly higher and within the double-digit percentage range.

The Segment Result Margin is predicted to be in the region of 17 percent at the mid-point of revenue guidance. Previously, a segment profit margin of 16.5 percent had been expected at the mid-point of revenue guidance. Due to the higher forecast for the Segment Result and the gain arising on the sale of the major part of Infineon’s RF power business, net income for the year is expected to be well in excess of €1 billion. ATV segment revenue is expected to grow significantly faster than the Group average.

Revenue of the IPC segment is likely to grow at a similar rate to the Group’s revenue growth. In the PMM segment revenue growth is expected to be below the Group average, but still sufficient to fully offset the decrease in revenue caused by the sale of the major part of Infineon’s RF power components business. Given the difficult market situation and the sharp loss in value of the US dollar, CCS segment revenue is expected to decline.

Himax Technologies Rebukes Motley Fool Article
Mirsense And XenomatiX Win Technology Showcase At European MEMS, Imaging And Sensors Event
Webinar: On-Site Hydrogen Production Improves Safety, Quality, And Productivity In Wafer, Chip And Semiconductor Manufacturing
Shin-Etsu Silicones Of America Primed For Growth
Infineon Expands U.S.-based IoT Security Research And Development Programs
AES Announces Acquisition Of Advanced Research Manufacturing (ARM)
Imec.xpand Raises EUR 117 Million To Invest In Innovative, Early-stage Ideas
Biosensor Allows Real-Time Oxygen Monitoring For ‘Organs-On-A-Chip’
NanoScientific Symposium On Scanning Probe Microscopy (SPM)
Siltectra Ramps Up Wafering Services
Thermco Systems Expands Global Operations With Acquisition Of CSD Epitaxy
Future Of Quantum Technology In UK Given Significant Funding Boost
Palomar Technologies Awarded ISO 9001:2015 Certificate
Brixon Licenses Sensor Technology From ORNL
Picosun Launches New Solutions Specially Targeted For Healthcare Industries
RIT Awarded $422K Grant For PIC Technology
ON Semiconductor To Demonstrate Innovation In Automotive, Power Conversion And IoT At Electronica
Intel Respond In Court To Qualcomm’s Claims
VTT Is Ranked Fourth In The World's Largest Research Funding Programme
Pfeiffer Vacuum Opens New High-tech Production Site In Romania
Teledyne E2v’s Emerald 12M And 16M Image Sensors Enter Mass Production
Cadence Recognized With Four 2018 TSMC Partner Of The Year Awards
ESI’s New Allegro LC Extends High-Volume Test Capability To Larger MLCCs
Helium Leak Detector Solutions

Info
×
Search the news archive

To close this popup you can press escape or click the close icon.
Logo
×
Logo
×
Register - Step 1

You may choose to subscribe to the Silicon Semiconductor Magazine, the Silicon Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in:
 
X
Info
X
Info