Infineon Technologies AG logo

IFX - Infineon Technologies AG News Story

€31.62 1.0  3.3%

Last Trade - 14/05/21

Sector
Technology
Size
Large Cap
Market Cap £35.44bn
Enterprise Value £38.65bn
Revenue £8.61bn
Position in Universe 36th / 1053

UPDATE 1-Infineon forecasts slower growth in "fraught" macro environment

Tue 12th November, 2019 7:01am
(Updates with CEO comments, results, outlook, dividend)
    Nov 12 (Reuters) - German chipmaker Infineon Technologies
 IFXGn.DE  on Tuesday forecast slower growth in the year ahead,
seeing no improvement in the all-important car market and
describing the economic environment as "fraught with
uncertainty".
    Infineon forecast that revenue would grow by 5% in its
fiscal year to Sept. 30, 2020, down from 6% in the year just
ended. It also said it expects the main margin metric that it
uses to compress further to 16% from 16.4%.
    "We are feeling the effects of weak global auto demand and
do not expect any improvement for the time being," CEO Reinhard
Ploss said.
    "The general economic environment remains fraught with
macroeconomic and political uncertainty," said Ploss, adding he
did not expect markets to recover before the second half of the
fiscal year.
    Infineon, a specialist in semiconductors used in electric
drivetrains, wind turbines and security systems, reported
fourth-quarter revenues in line with market expectations but
profitability was squeezed.
    Segment margin, the metric Infineon uses to measure the
operating profitability of its business units, narrowed to 15.1%
from 15.7% in the preceding quarter and 19.5% in the same period
a year earlier.
    It forecast a quarter-on-quarter revenue decline of 7% in
its fiscal first quarter, which is seasonally typically weak,
with a segment margin of around 13%.
    Infineon proposed an unchanged dividend of 27 euro cents per
share.

 (Reporting by Douglas Busvine
Editing by Michelle Martin)
 ((douglas.busvine@tr.com; +49 30 2888 4084; Reuters Messaging:
douglas.busvine.thomsonreuters.com@reuters.net))
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.