Infineon Shares Fall on Europe Car Sales Slump: Frankfurt MoverKenneth Wong
Infineon Technologies AG, which gets more than 40 percent of its revenue from chips for the automotive industry, fell to the lowest level in five months after European car sales slumped in March.
Infineon dropped as much as 3.8 percent to 5.49 euros. The Neubiberg, Germany-based company says it’s the second-biggest supplier of chips used in control functions from fuel injection and interior lighting, behind Japan’s Renesas Electronics Corp.
European car sales are sliding to a 20-year low after registrations fell 10 percent to 1.35 million vehicles in March, the 18th consecutive monthly drop, with Germany’s market shrinking 17 percent, according to the European Automobile Manufacturers’ Association. Volkswagen AG, Bayerische Motoren Werke AG and Daimler AG, which last year shrugged off Europe’s decline, are forecasting flat 2013 earnings as investor confidence falls in Germany, the region’s biggest economy.
Infineon shares have fallen about 9 percent since April 12, when Volkswagen reported slower deliveries. The stock has fallen 26 percent in the past 12 months, cutting the chipmaker’s market value to 6 billion euros ($7.9 billion).
Dialog Semiconductor Plc, another chipmaker that supplies to the automotive industry, fell 6 percent to 9.82 euros.