Infineon increases revenue, reduces outlook
In the first quarter, the semiconductor manufacturer’s sales rose by 8% to € 1,775 million and its profit even rose by 27% to € 205 million. In Infineon’s largest business segment, Automotive, sales rose by 9 percent to € 770 million, although profit was almost 10 percent lower than a year ago.
The Power Management segment increased its sales by 10% (from € 497 to € 545 million) and its profit by 32% (from 81 to 107 million euros).
Industrial Power Control posted a 12% increase in sales from € 264 million to € 296 million (+9%) and a doubling of profit from € 24 million to € 48 million.
The Chip Card & Security division, traditionally the problem child of the German semiconductor manufacturer, did not do quite as well. Sales fell by 7% to € 162 million, while profits dropped by 14% to just € 25 million.
The company’s sales revenue suffered from the weaker dollar across all divisions; if currency parity had remained stable, sales revenue would have grown by as much as 13 %, explained Infineon CEO Reinhard Ploss. The tax reform in the USA also makes it more difficult for the company to make profits there, as Dominik Asam, CFO, explained. Against the backdrop of the weak dollar, the company had to lower its forecast for 2018, with sales expected to grow by only 5% instead of 9% in the current fiscal year. The operating margin is expected to be 16.5 %; previously, the target was 17 %.