Electromobility continues to drive Infineon’s business
In Q3, the semiconductor manufacturer generated revenues of €1.94 billion, 6 percent more than in the same quarter last year and likewise 6 percent more than in the previous quarter. Net income increased by 7 percent year-on-year to €271 million. Operating profit was €319 million compared to €532 million in the previous quarter. The decline is due to the sale of Infineon’s RF power components business, most of which was booked in Q2.
The good overall performance was due to strong demand in all four Group divisions (Automotive, Industrial Power Control, Power Management and Multimarket and Chip Card Security). In addition to the strong demand, the revival of the dollar also helped to boost business.
“Infineon remains on the road to success. The stronger dollar will give us additional momentum,” says Infineon CEO Dr. Reinhard Ploss. “The automotive business is doing well. The market for electric mobility in particular remains a growth driver. There is also strong demand for drives for industrial machines and our solutions for household and DIY appliances, which are increasingly battery-powered. We expect our customers’ demand for our products and increasingly high-quality, integrated solutions to continue to grow”. In this context, Ploss confirmed the company’s decision to build a 300mm thin-wafer factory in Villach (Austria).
For the fourth quarter of fiscal 2018, with an assumed EUR/USD exchange rate of 1.20, the company expects sales to increase by 3 percent plus/minus 2 percentage points compared to the previous quarter. For the full year 2018, Infineon expects revenues to increase by 6.4 to 7.4 percent compared to the previous year. The current estimate is thus at the upper end of the previously forecast range of 4 to 7 percent.
With revenues of €836 million (after €811 million in the previous quarter), Automotive accounted for 43% of total revenues, making it by far the strongest division. In addition to the automotive sector (ATV), above-average growth is also expected for the Industrial Power Control (IPC) sector.
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