Infineon slightly beats estimates in difficult market

May 07, 2019 //By Christoph Hammerschmidt
Infineon slightly beats estimates in difficult market
After a previous profit warning, Infineon earned better than expected in the past quarter. Although the current environment looks rather bleak, the company sees itself on the right track in the long term.

In the quarter between January and the end of March, Infineon performed somewhat better than observers had expected in a difficult market environment. In particular, weaker demand from customers in the automotive industry and reduced growth in China put pressure on the figures. Infineon CEO Reinhard Ploss expects business to remain weak in the short to medium term. "The boom is over for the time being, the momentum of demand has weakened," said Ploss.

For the third quarter of its financial year, which ends in October, Ploss now only expects a sales development of minus 2% to, at best, plus 1%. For the entire fiscal year, the company predicts sales of 8 billion euros with a fluctuation range of +/- 2%. The decline in sales is worse than the usual seasonality, Ploss said.

The company's sales in the third quarter amounted to €1.98 billion – a mere 1% higher than in the previous quarter, but still 8% more than in the same quarter last year. Automotive accounted for 44% of sales. Power Management & Multimarket generated 30% of sales, Industrial Power Control 18% and Digital Security Solutions 8%. The growth rates of the individual divisions did not differ significantly from those of the company as a whole.

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