Infineon sees only slow recovery
Infineon's situation stabilized somewhat in the third quarter, but the target markets are only recovering slowly, according to the company's CEO.
Infineon reception hall in Regensburg
(Image: Infineon)
Chip manufacturer Infineon is only very slowly emerging from the crisis. In the third quarter of its financial year, the company from Neubiberg near Munich was able to increase turnover and profit slightly compared to the previous three months. However, with a turnover of 3.7 billion euros, the Group fell slightly short of its forecast and expectations. In a year-on-year comparison, earnings after tax fell from 831 million to 403 million euros, while sales fell from 4.09 billion to 3.7 billion euros. In May of this year, Infineon once again lowered its forecast and announced job cuts.
Sales in the Automotive segment rose from 2.08 billion in the previous quarter to 2.11 billion euros. According to the press release, Infineon attributes the 2 percent increase to stronger demand in the area of software-defined vehicles, including E/E architecture, which benefited microcontrollers in particular. The segment result rose from 512 million to 537 million euros.
Inventories overshadow demand
At 749 million euros, Infineon generated 5 percent more revenue in the Power & Sensor Systems segment than in the previous quarter. Here, the company recorded rising demand for components in the server and data center sector as well as for USB controllers and silicon microphones. The segment result increased from EUR 64 million to EUR 70 million.
Sales in the Connected Secure Systems segment remained almost unchanged at 366 million euros. Demand in the Wi-Fi area was somewhat weaker, while in the other areas it was roughly on a par with the previous quarter, Infineon writes. As in the previous quarter, the segment result amounted to 42 million euros.
Infineon CEO Jochen Hanebeck spoke of a challenging market environment. "The recovery in our target markets is progressing only slowly. Considering the persistently weak overall economic momentum, inventories are overshadowing final demand in many places."
Infineon is forecasting sales of around 4 billion euros for the fourth quarter, with rising sales in all segments. The figure for the year as a whole is expected to be 15 billion.
(anw)
