Infineon: ’profitability better than expected’

Infineon recorded 2018 first quarter revenues of EUR 1,775 million, which is an increase from EUR 1,645 during the corresponding period last year. Segment Result amounted to EUR 283 million during 1Q18, up from EUR 246 million during 1Q17. Segment Result Margin was 15.9% in 1Q18. “Infineon has made a strong start to the new fiscal year,” stated Dr. Reinhard Ploss, CEO of Infineon. “Earnings and margin were better than forecast – despite the expected slight seasonal dip in revenues. The market for electro-mobility continues to drive growth. Infineon offers solutions for the entire range of drivetrain systems from hybrid to pure electric vehicles. Moreover, we continue to benefit from excellent market conditions, which are driving high demand for power components used in applications across the board, such as solar power plants, especially in China, and also for data centers.” “Operationally we are fully on track. We could still defy the headwind from the weaker US$ in the fiscal first quarter. Adjusted for the depreciation of the US$ from 1.15 to 1.25, our revenue momentum is unchanged, in terms of the Segment Result Margin even slightly better. However, we are unable to compensate a further depreciation of the US$ by another 8 percentage points, which negatively affects more than half of our revenues. As such, we currency-adjusted our outlook accordingly," Dr. Reinhard Ploss continues. For the second quarter of FY 2018 the company expects sequential revenue growth of 4% and Segment Result Margin of 16 percent at mid-point of revenue guidance.