Corona shock: Infineon withdraws forecast for 2020 fiscal year: Page 2 of 2

March 26, 2020 //By Christoph Hammerschmidt
Corona shock: Infineon withdraws forecast for 2020 fiscal year
The coronavirus pandemic, which is currently worsening worldwide, is causing massive distortions in global supply chains, end markets and economic development in general. These developments are very dynamic and severely limit predictability. Like several other companies, Infineon Technologies AG is therefore withdrawing its previous guidance for the current fiscal year.

All of Infineon's major manufacturing sites worldwide are currently continuing production, albeit some with reduced capacity utilization, the company stressed. These include plants in regions such as Malaysia or California, where the authorities have imposed particularly strict output restrictions. The supply of raw materials is currently stable. Logistics chains, including alternative transport routes, have been secured in order to continue supplying our customers. In addition, research & development, marketing, sales and administration will continue, largely through work from the home office.

For the current quarter, which ends on 31 March, revenues are expected to be around the lower end of the forecast range.

In many of the end markets and regions where Infineon is active, measures have been initiated to combat the coronavirus pandemic. Their negative economic impact will weigh on the second half of the 2020 fiscal year. According to market researchers, the number of vehicles produced and sold will decline significantly compared to 2019. The cause is a combined shock on both the supply and demand side: major car manufacturers and suppliers have announced that they will temporarily cut back their production in Europe and the USA, while the situation in China seems to be slowly returning to normal.

However, there are still some Infineon business areas that are holding up comparatively well in the current market turbulence. These include products for communications and data centers, driven by the growing demand for online collaboration applications and increased data traffic. Tax and other measures currently being taken by governments and central banks to provide liquidity will take time to take effect.

Related articles:

NXP, Analog forecast about 5% coronavirus impact on quarterly revenues

Coronavirus casts long shadow over 2020 business

ST keeps working despite Italian 'lockdown'

Vous êtes certain ?

Si vous désactivez les cookies, vous ne pouvez plus naviguer sur le site.

Vous allez être rediriger vers Google.