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Infineon Q4 Segment Result Climbs, Sees Revenue Growth In FY18; Stock Up


Chipmaker Infineon Technologies AG (IFNNY) reported Tuesday a lower net profit in its fourth quarter, while segment results climbed from last year on higher revenues in all segments. Further, the company lifted its dividend, and said it expects higher revenues in fiscal 2018. Infineon shares were gaining around 5 percent in the morning trading in Germany.

Reinhard Ploss, CEO of Infineon, said, "Infineon continues to grow. ...Demand is also strong for our highly efficient chips, by example for fast chargers for tablets. With future technologies such as silicon carbide and gallium nitride, we are paving the way for tomorrow's success. Adjusted for exchange rate effects, our growth rate in the 2018 fiscal year could even reach the double-digit mark."

In the fourth quarter, net income declined 22 percent to 176 million euros from 225 million euros last year. Earnings per share were 0.16 euro, down 20 percent from 0.20 euro last year.

Adjusted earnings per share amounted to 0.22 euro for the fourth quarter, compared to 0.21 euro last year.

Segment result, however, climbed 17 percent from last year to 328 million euros. Segment result margin improved to 18 percent from 16.7 percent a year ago. Adjusted gross margin was 38.6 percent, up from 37.7 percent a year ago.

Fourth-quarter revenue was 1.82 billion euros, up 9 percent from last year's 1.68 billion euros, but down 1 percent sequentially.

In the quarter, automotive revenues increased 7 percent to 736 million euros. industrial power control revenues climbed 18 percent, power management & multimarket revenues went up 8 percent and chip card & security revenues grew 4 percent.

In light of favorable business developments in the last financial year and the positive outlook for the 2018 fiscal year, the company will make a proposal to shareholders at the Annual General Meeting 2018 to increase the dividend for the 2017 fiscal year by a further 3 cents to 0.25 euro per share, the company noted.

Looking ahead, for the first quarter of fiscal 2018, Infineon expects a seasonally typical quarter-on-quarter revenue decrease of 2 percent, plus or minus 2 percentage points. At the mid-point of revenue guidance, the Segment Result Margin is expected to come in at 15 percent.

For the 2018 fiscal year, Infineon expects year-on-year revenue growth of about 9 percent, plus or minus 2 percentage points.

The Segment Result Margin is expected to come in at about 17 percent at the mid-point of revenue guidance. In the year 2017, segment results margin was 17.1%.

In Germany, Infineon shares were trading at 24.45 euros, up 4.91 percent.

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