© Components | April 30, 2014

Infineon: 'we have been able to markedly improve our profitability'

Infineon Technologies' second-quarter revenue increased 7 percent from EUR 984 million to EUR 1,051 million, with all four operating segments contributing to growth.
“Sales grew in the second quarter. Growth is in line with our expectations”, stated Dr. Reinhard Ploss, CEO of Infineon Technologies AG. “By capitalizing on our market opportunities, we have been able to markedly improve our profitability.” The positive development should continue in the second half of the year. “Demand for our products is strengthening and our order books are filling up nicely. Thanks to our prior investments, we are in a favorable position to outgrow the market in this fiscal year”, says Dr. Reinhard Ploss.

Segment Result improved by 26 percent from EUR 116 million in the preceding quarter to EUR 146 million in the second quarter of the current fiscal year. The Segment Result Margin increased to 13.9 percent, compared with the first quarter’s margin of 11.8 percent. The improvement in Segment Result was influenced partly by higher revenue and partly by multiple nonrecurring effects.

Income from continuing operations rose to EUR 114 million in the second quarter, compared with EUR 85 million in the previous quarter. Second-quarter income from discontinued operations increased from EUR 2 million to EUR 10 million.

Net income for the second quarter of the 2014 fiscal year improved to EUR 124 million, compared with EUR 87 million in the preceding quarter.

Investments – which the Company defines as the sum of purchases of property, plant and equipment, purchases of intangible assets and capitalized development costs – increased quarter-on-quarter from EUR 129 million to EUR 154 million. Depreciation and amortization rose from EUR 120 million in the first quarter to EUR 126 million in the second.

Outlook for the third quarter of the 2014 fiscal year

Based on the positive order backlog across all operating segments, Infineon expects continued growth in the third quarter of the 2014 fiscal year with an increase in revenue of between 4 and 8 percent compared to the previous quarter. The third-quarter Segment Result Margin is expected to come in between 14 and 16 percent.


Images© Infineon Technologies
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