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© stevanovicigor dreamstime.com Components | November 26, 2015

Infineon sees Q4 profit climb following International Rectifier integration

Infineon's revenue edged up by EUR 12 million or 1% to EUR 1.598 million in the fourth quarter of the 2015 fiscal year, compared with EUR1.586 million in the previous quarter.
The Industrial Power Control (IPC), Power Management & Multimarket (PMM), and Chip Card & Security (CCS) segments all contributed to revenue growth, whereas the Automotive (ATV) segment recorded a 1 percent decrease.

The gross margin, which included depreciation and amortization related to the purchase price allocation of EUR 17 million rose to 39.0 percent quarter-on-quarter. Gross margin in the preceding quarter was 34.8 percent.

Segment Result improved by 17 percent quarter-on-quarter from EUR 245 million to EUR 286 million in the fourth quarter. The fourth-quarter Segment Result Margin came in at 17.9 percent, compared to 15.4 percent in the preceding three-month period.

"The integration of International Rectifier has been a success. The fourth-quarter margin generated by the acquired business was already 15 percent and hence in line with Infineon's target for Segment Result Margin over the economic cycle. With that we have achieved our aim more than one year ahead of schedule," stated Dr. Reinhard Ploss, CEO of Infineon Technologies AG. "We will achieve further growth in revenue, earnings and margin in the course of the current 2016 fiscal year."

Operating income rose from EUR 119 million in the third quarter of the 2015 fiscal year to EUR 203 million in the fourth quarter. Income from continuing operations improved from EUR 105 million to EUR 322 million, while income from discontinued operations decreased from EUR 4 million to EUR 3 million. Net income increased from EUR 109 million in the third quarter to EUR 325 million in the three-month period under report.
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