Infineon Projects Higher Sales as Car and Security Units Pick Up
Infineon Technologies AG (IFX), Europe’s second-biggest semiconductor maker, projected sales growth in its fiscal second quarter as orders for automotive and identity-checking components rise.
Revenue in the three months through March will probably rise by a “mid-single-digit percentage” from the previous quarter, when the company posted sales of 984 million euros ($1.34 billion), the Neubiberg, Germany-based company said in a statement today. Analysts were predicting second-quarter sales of 1.03 billion euros, which would equal a 4.7 percent gain, according to the average of 11 estimates compiled by Bloomberg.
Infineon, which has bet on fields such as car electronics and mobile-device power management for growth, plans to boost investments 72 percent to 650 million euros this year as demand rises and production from larger-diameter silicon wafers ramps up. Operating profit before some items, which the company calls segment result, will be 10 percent to 13 percent of sales in the current quarter compared with 11.8 percent in the previous three months, Infineon said.
“Infineon has made a good start into the new fiscal year,” Chief Executive Officer Reinhard Ploss said in the statement. “Good order intake and positive forecasts for the global economy underpin our outlook: Infineon is poised to profitably grow in 2014.”
First-quarter profitability exceeded the company’s forecast as improvements to manufacturing productivity kicked in earlier than expected, Infineon said. Second-quarter revenue will be propelled by the automotive and chip card and security segments, it said. The company retained its full-year forecast.
Infineon stock has gained 15 percent in the past 12 months, valuing Infineon at 8.19 billion euros.
STMicroelectronics NV (STM), the largest chipmaker in Europe, is targeting a return to profit this year after refocusing on semiconductors used in cars, games consoles and high-end smartphones, CEO Carlo Bozotti said in an interview this week.
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