sales and operating profit in the first quarter compared to the previous quarter, as expected, significantly lower, as the Dax group announced on Wednesday in the town of Neubiberg near Munich. With an operating margin of 15.5 percent, the semiconductor specialist has exceeded both their own expectations as well as those of analysts. The margin benefited from a positive one-off effect. Without this, they would have amounted to only 13.6 percent.
Infineon share price in focus
On the stock exchange, the messages were well received. One hour after the start of trading, the Infineon share stood as the Dax top seven percent in the Plus. A trader said in a first reaction, the profitability had been better than feared. At the same time, the signals for the second quarter are not convinced but. The stock overcame in the Morning, a technically important brand. Infineon 21,78 EUR +1,65 (+8,20%) Xetra
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the course data In the first quarter fell for the so-called segment result quarter-on-quarter by five percent to 297 million euros, revenue fell by seven percent to 1.92 billion euros. The bottom line is a profit of 210 million euros, or 30 per cent more than a quarter previously stood. In comparison to the previous year, all indicators were significantly decreased.
Infineon is struggling with difficult conditions in the auto industry
the group chief Executive Reinhard Ploss said the difficult conditions, but referred also to the fact that that segment was the result of Infineon, thanks to savings and special effects, slightly better than expected. In addition, the chip manufacturer can see in each of the areas of the Server business signs of improvement. Regardless, he acknowledged, that to not expect a broad recovery of demand before the second half of the fiscal year.
In the first quarter, Infineon had to fight both in the business with Chips for the automotive industry (ATV) as well as in the PMM division, in the business with Chips for the power supply, as well as for mobile devices such as Smartphones or Tablets is bundled, with a clear decline in Numbers. Especially the Automotive division is for Infineon to be of great importance, it contributes the lion’s share of sales. More and more Chips and Sensors are installed in vehicles. However, the persistently weak automotive business and lower demand also prepares the chip manufacturer for some time. While it ran in the business with Chips for the industry (IPC) was similarly low to that in the other two sectors, the decline in Revenues in the segment of Chips for digital security solutions (DSS) within manageable limits.
For the second quarter, Infineon expects a revenue increase of five percent (plus or minus two percentage points) compared to the previous quarter and a segment result margin of about 14 percent in the middle of the sales range. Prerequisite for this is, however, that the outbreak of the Coronavirus have no significant negative effect on the development of the business, it said.
Takeover should be up to the middle of the year.
does The forecast for the current fiscal year confirmed Infineon. Accordingly, the group continues to expect sales growth of three to seven percent compared to the previous year and a segment result margin of around 16 percent. In the Automotive – and the IPC-division sales are expected to grow stronger than the group average. Infineon is expected for the full year, with an investment of 1.3 billion euros.
With a view on the proposed Acquisition of the US competitor Cypress Semiconductor, Infineon now expects that the enforcement against the end of the second or beginning of the third quarter can be reported. To date, the group had expected that the missing approval of the competition authorities from the USA should be done by the end of 2019 or early 2020. After the EU had already given up in the autumn, the green light for the acquisition in the amount of nine billion euros, the approval in the United States continue to wait. In the past, the goal of an Acquisition of US semiconductor specialist wolf speed was vetoed by the authorities.
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