DGAP-News: Infineon Technologies AG: INFINEON COMPLETES 2013 FISCAL YEAR WITH A
STRONG FOURTH QUARTER
DGAP-News: Infineon Technologies AG / Key word(s): Quarter
Infineon Technologies AG: INFINEON COMPLETES 2013 FISCAL YEAR WITH A
STRONG FOURTH QUARTER
12.11.2013 / 07:30
- Q4 FY2013: REVENUE AT EUR1,053 MILLION AS EXPECTED; SEGMENT RESULT OF
EUR148 MILLION, SEGMENT RESULT MARGIN OF 14.1 PERCENT; EXCLUDING
NON-RECURRING ITEMS, SEGMENT RESULT MARGIN WOULD HAVE BEEN
APPROXIMATELY 13 PERCENT THUS IN LINE WITH EXPECTATIONS
- OUTLOOK FOR Q1 FY2014: REVENUE BETWEEN EUR960 MILLION AND EUR1 BILLION;
SEGMENT RESULT MARGIN BETWEEN 8 AND 10 PERCENT
- OUTLOOK FOR FY2014: REVENUE INCREASE BETWEEN 7 AND 11 PERCENT; SEGMENT
RESULT MARGIN BETWEEN 11 AND 14 PERCENT
- MANAGEMENT BOARD PROPOSES DIVIDEND OF EUR0.12 PER SHARE FOR 2013 FISCAL
Neubiberg, Germany - November 12, 2013 Infineon Technologies AG today is
reporting results for the fourth quarter and the 2013 fiscal year, both
ended September 30, 2013.
in Euro million Q4 FY13 Q3 FY13 +/- in %
Revenue 1,053 1,022 3
Segment Result 148 117 26
Segment Result Margin [in %] 14.1% 11.4%
Income (loss) from continuing operations 139 82 70
Income (loss) from discontinued operations, 3 (5) 160
net of income taxes
Net income 142 77 84
Basic earnings (loss) per share from 0.13 0.08 63
Basic earnings (loss) per share from - (0.01) 100
Basic earnings per share1 0.13 0.07 86
Diluted earnings (loss) per share from 0.13 0.08 63
Diluted earnings (loss) per share from - (0.01) 100
Diluted earnings per share1 0.13 0.07 86
1 The calculation for earnings per share is based on unrounded figures.
'In the fourth quarter revenue, result and margin increased for the third
time in succession. The 2013 fiscal year has therefore turned out to be
better than expected one year ago', stated Dr. Reinhard Ploss, CEO of
Infineon Technologies AG. 'We reacted quickly to market developments.
Thanks to forward-looking cost management, Infineon remained profitable
even when demand was at its lowest. When the market picked up again, we
were able to ramp up production quickly and gain market share.'
GROUP EARNINGS IN FOURTH QUARTER OF 2013 FISCAL YEAR
Fourth-quarter revenue of the Infineon Group increased by 3 percent to
EUR1,053 million and was thus in line with the outlook at the beginning of
the quarter. This positive development was primarily driven by the
Industrial Power Control (IPC) and Chip Card & Security (CCS) segments.
Revenue of the Power Management & Multimarket (PMM) segment increased
slightly, while that of the Automotive (ATV) segment decreased marginally.
Segment Result increased by 26 percent to EUR148 million, compared to
EUR117 million achieved in the previous quarter. The Segment Result Margin
in the fourth quarter was 14.1 percent, up from the 11.4 percent recorded
in the preceding quarter. The Segment Result for the fourth quarter of the
fiscal year did, however, contain the impact of certain non-recurring
items. Most significant was the positive effect from a reduction in risk
allowances for inventories, which was only partly offset by higher expenses
for variable compensation. Excluding non-recurring items, the Segment
Result Margin would have been in line with the level of approximately 13
percent forecasted at the beginning of the quarter.
Income from continuing operations in the fourth quarter amounted to EUR139
million, compared with EUR82 million in the previous quarter. The income
from discontinued operations improved quarter-on-quarter from negative EUR5
million to positive EUR3 million.
Net income increased from EUR77 million in the third quarter to EUR142
million in the fourth quarter of the 2013 fiscal year. Earnings per share
(basic and diluted) improved from EUR0.07 to EUR0.13.
Investments - which Infineon defines as the sum of purchases of property,
plant and equipment, purchases of intangible assets and capitalized
development cost - increased from EUR71 million the third quarter to EUR155
million in the fourth quarters of the 2013 fiscal year. Depreciation and
amortization amounted to EUR119 million in the fourth quarter, compared to
EUR115 million in the third quarter.
Free cash flow from continuing operations saw a continuation of the upward
trend in recent quarters and increased to EUR156 million. The figure for
the third quarter had been EUR135 million.
The gross cash position improved from EUR2.137 billion at the end of June
2013 to EUR2.286 billion at September 30, 2013. The net cash position at
the end of the fourth quarter was EUR1.983 billion, compared to EUR1.832
billion at the end of the preceding quarter.
GROUP RESULT FOR THE 2013 FISCAL YEAR
Infineon recorded Group revenue of EUR3,843 million for the full year,
compared to the previous year's figure of EUR3,904 million. The decrease
was therefore only 2 percent, reflecting an outcome for the 2013 fiscal
year that was better than expected in autumn 2012. From the second quarter
onwards, demand picked up at a significantly faster pace than expected,
which more than compensated for the negative impact of a
weaker-than-budgeted exchange rate of the US dollar against the euro
(average of 1.31 compared to the budgeted rate of 1.25).
Group revenue excluding Other Operating Segments and Corporate and
Eliminations was 1 percent higher than in the previous fiscal year, with
revenue increases in the ATV, PMM and CCS segments more than offsetting the
decrease in the IPC segment. The biggest increase (6 percent) was recorded
by the PMM segment, which benefited from rising demand for mobile devices,
such as smartphones and tablets. The ATV segment achieved a 3 percent
increase in revenue, influenced by still weak automobile markets in Europe
which was more than offset by good sales figures in the USA and China. The
demand for German premium-cars remained strong. Revenue grew by 1 percent
in the CCS segment. IPC's revenue dropped by 11 percent compared to the
2012 fiscal year, mostly reflecting weak worldwide demand for capital
The reported decrease in total Group revenue was primarily due to the
scheduled reduction in revenue generated by Other Operating Segments. The
phase out of deliveries of products and services to the previously sold
Wireline Communications and Wireless mobile phone businesses caused revenue
to decrease by EUR99 million compared to the previous year.
Segment Result for the 2013 fiscal year amounted to EUR377 million,
compared to the previous year's figure of EUR527 million, and the Segment
Result Margin fell year-on-year from 13.5 percent to 9.8 percent. The
decrease in Segment Result is attributable primarily to the 13 percent
quarter-on-quarter reduction in revenue recorded in the first quarter of
the 2013 fiscal year. Nonetheless Infineon remained solidly profitable in
the first quarter with a Segment Result Margin of 5.2 percent.
Subsequently, Infineon experienced revenue growth of approximately 24
percent from the first to the fourth quarter, with the Segment Result
Margin rising to 14.1 percent.
In line with the change in Segment Result, Group income fell from EUR427
million in the 2012 fiscal year to EUR272 million in the 2013 fiscal year.
Earnings per share amounted to EUR0.25 (basic and diluted), compared to
EUR0.40 (basic) and EUR0.39 (diluted) in the previous fiscal year.
Free cash flow recovered from a negative amount of EUR219 million in the
2012 fiscal year to a positive amount of EUR235 million in the 2013 fiscal
year, with lower investments having a positive impact.
The gross cash position increased marginally, finishing the fiscal year at
EUR2.286 billion compared to EUR2.235 billion one year earlier. The net
cash position increased over the same period from EUR1.940 billion to
DIVIDEND FOR THE 2013 FISCAL YEAR
The Management Board will propose the payment of an unchanged dividend of
EUR0.12 per share for the 2013 fiscal year. This proposal is based on a
policy of offering an appropriate participation in growing earnings via the
dividend to shareholders. At the same time, Infineon is intending to at
least maintain the dividend at a constant level, even in times of flat or
declining earnings or negative free cash flows.
OUTLOOK FOR THE FIRST QUARTER OF 2014 FISCAL YEAR
Due to the seasonal decline in demand towards the end of the calendar year,
Infineon forecasts that revenue will decrease to between EUR960 million and
EUR1 billion in the first quarter of the 2014 fiscal year, with
quarter-on-quarter decreases expected in all four segments. In percentage
terms, the decrease is likely to be significantly more pronounced for the
PMM and CCS segments than for the ATV and IPC segments. In line with the
expected decline in revenue, the Segment Result Margin is forecast to
decrease to between 8 to 10 percent.
OUTLOOK FOR THE 2014 FISCAL YEAR
For the 2014 fiscal year, based on an assumed exchange rate of the US
dollar against the euro of 1.35, Infineon forecasts an increase in revenue
of between 7 and 11 percent compared to the previous year and a Segment
Result Margin of between 11 and 14 percent.
The expected increase in revenue for the IPC segment should be well above
the average for the Group. The growth rates for the PMM and CCS segments
are forecast to be roughly in line with the expected average. The ATV
segment is likely to grow at a slightly lower rate than the Group average.
Revenue generated by Other Operating Segments has decreased continuously in
each of the last two fiscal years and only amounted to EUR26 million in the
2013 fiscal year. The figure for the 2014 fiscal year is expected to be
similar or slightly lower.
In the light of the high levels of capacity utilization seen towards the
end of the 2013 fiscal year, expected changes in the production mix and
continued expansion of 200-millimeter and 300-millimeter thin wafer
capacities, Infineon is planning investments of approximately EUR650
million for the 2014 fiscal year. Depreciation and amortization will
continue to increase in the 2014 fiscal year and amount to EUR500 million
or slightly above. Free cash flow in the 2014 fiscal year should be at
least at a similar level to that achieved in the 2013 fiscal year.
Infineon segments' performance in the fourth quarter of the 2013 fiscal
year can be found in the quarterly information at http://www.infineon.com .
All figures in this quarterly information are preliminary and unaudited.
ANALYST TELEPHONE CONFERENCE AND PRESS CONFERENCE
Infineon will host a telephone conference call for analysts and investors
(in English only) on November 12, 2013 at 9:30 am (CET), 3:30 am (EST).
During the call, the Infineon Management Board will present the Company's
results from the fourth quarter and 2013 fiscal year. In addition, the
Management Board will host a live press conference at 11:00 am (CET), 5:00
am (EST). It can be followed over the Internet in both English and German.
Both conferences will also be available live and for download on Infineon's
website at www.infineon.com/investor .
The Q4 Investor Presentation is available (in English only) at:
INFINEON FINANCIAL CALENDAR (*preliminary)
- Nov 18-19, 2013 Company roadshow - including presentation by Andreas
Urschitz, Division President, Power Management & Multimarket (PMM),
- Nov 20-21, 2013 Morgan Stanley TMT Conference, Barcelona
- Dec 3-4, 2013 Credit Suisse Technology Conference, Scottsdale/Arizona
- Jan 30, 2014* Earnings Release for the First Quarter of the 2014 Fiscal
- Feb 13, 2014 Annual General Meeting 2014, Munich, Germany
- Apr 29, 2014* Earnings Release for the Second Quarter of the 2014
- Jul 30, 2014* Earnings Release for the Third Quarter of the 2014 Fiscal
- Nov 18, 2014* Earnings Release for the Fourth Quarter and Full 2014
Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and
system solutions addressing three central challenges to modern society:
energy efficiency, mobility, and security. In the 2013 fiscal year (ending
September 30), the Company reported sales of EUR3.84 billion with around
26,700 employees worldwide. Infineon is listed on the Frankfurt Stock
Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market
OTCQX International Premier (ticker symbol: IFNNY).
D I S C L A I M E R
This press release contains forward-looking statements about the business,
financial condition and earnings performance of the Infineon Group.
These statements are based on assumptions and projections resting upon
currently available information and present estimates. They are subject to
a multitude of uncertainties and risks. Actual business development may
therefore differ materially from what has been expected.
Beyond disclosure requirements stipulated by law, Infineon does not
undertake any obligation to update forward-looking statements.
End of Corporate News
12.11.2013 Dissemination of a Corporate News, transmitted by DGAP - a
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Company: Infineon Technologies AG
Am Campeon 1-12
Phone: +49 (0)89 234-26655
Fax: +49 (0)89 234-955 2987
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart; Terminbörse EUREX
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