Infineon concludes profitable first quarter
Company raises its outlook for the 2023 fiscal year slightly, adjusting for currency effects.
Infineon Technologies AG is reporting results for the first quarter of its 2023 fiscal year (period ended 31 December 2022):
Q1 FY 2023: Revenue €3.951 billion, Segment Result €1.107 billion, Segment Result Margin 28.0 percent
Outlook for Q2 FY 2023: Based on an assumed exchange rate of US$1.05 to the euro, revenue of around €3.9 billion with a Segment Result Margin of around 25 percent expected
Outlook for FY 2023: Despite a now assumed exchange rate of US$1.05 to the euro (previously US$1.00), Infineon continues to anticipate revenues of around €15.5 billion (plus or minus €500 million), with an adjusted gross margin of around 45 percent and a Segment Result Margin of now around 25 percent (previously around 24 percent) at the mid-point of the guided revenue range. Investments are still expected to amount to approximately €3.0 billion. Taking the planned investments in frontend buildings into account, Infineon continues to expect Free Cash Flow of around €0.8 billion and adjusted Free Cash Flow of around €1.5 billion
"Infineon is staying on course in choppy waters, and the first quarter of our 2023 fiscal year has been very profitable. Substantial parts of our business have proved robust even in a weaker macroeconomic environment," says Jochen Hanebeck, CEO of Infineon. "In particular, the energy transition and expansion of electromobility are causing a continuously high need for our solutions in industrial and automotive applications. In contrast, we are seeing significantly weaker demand in areas such as smartphones, PCs and data centers. We are continuing to navigate carefully in these challenging times and remain flexible in our approach to market dynamics. All in all, we are increasing our guidance slightly for the fiscal year, adjusting for currency effects."
