Infineon Drops as Volkswagen Sees Headwinds: Frankfurt Mover
Infineon Technologies AG (IFX), Europe’s second-biggest chipmaker, fell the most in five months after Volkswagen AG (VOW) reported car slower deliveries and headwinds in Europe, signaling weakening demand for semiconductors.
Volkswagen’s sales growth fell to 0.2 percent in March from 8.3 percent for the first two months of the year, the Wolfsburg, Germany-based carmaker said in a statement today. Infineon shares slumped as much as 5 percent to 5.82 euros today, the biggest decline since Nov. 7. They were down 3 percent as of 4 p.m. in Frankfurt.
Infineon gets more than 40 percent of its revenue from chips for the automotive sector, including products that control functions from fuel injection and interior lighting. The Neubiberg-based company says it’s the second-biggest supplier of such chips after Renesas Electronics Corp.
Still, Infineon is “well-positioned to capture” growth as individual cars use ever more computer-controlled parts, Sanford C. Bernstein analysts led by Pierre Ferragu said in a note yesterday. The company benefits from being exposed to the higher end of the market, the analysts said.
Car sales will grow to 103.4 million in 2018 from 81.5 million last year, according to projections by researcher IHS cited by Infineon in its Jan. 31 earnings presentation.
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