Industrial surprise in Infineon’s strong Q2

Industrial surprise in Infineon’s strong Q2

Business news |
By eeNews Europe

Again, the automotive business (ATV) was by far the largest item in the company’s figures with a share of 46% year-over-year. Infineon reports strong demand in particular from German premium manufacturers such as Audi, BMW, Daimler and Porsche which currently swim on a wave of success throughout the world. Nevertheless, ATV is expected to grow "only" at average of Infineon’s entire business of about 7 to 11%. Net income rose from €33 million in the same quarter a year ago to €124 million during the past quarter, however these figures are not really comparable since they contain a number of extraordinary effects.

While ATV increased by 14% year-on-year, the Industrial Power Control (IPC) segment went on the passing lane with a sales growth of 28% to a total of €185 million. The Power Management and Multimarket (PMM) segment grew by 11%, the Chip Card & Security (CCS) segment by 12 %. In the light of these figures, IPC contributed 18% to Infineon’s total sales, PMM 24% and CCS 12%. According to Ploss, the positive outlook should continue through the second half of the year.

For the current quarter (the third in its business year), Infineon expects a revenue increase between 4 and 8 %; the expectations for the entire FY 2014 were slightly upgraded to the range between 7 and 11%. Interesting: The Industrial Power Control segment is expected to grow significantly above the group average. Market watchers see a connection to demand from Siemens’ railway production. While there is a possibility that Siemens will sell this business to French competitor Alstom with potentially negative effects for Infineon’s power electronics business, such a move is too far into the future to become effective in FY2014 – and it is still a remote option anyway.

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