3rd Quarter at Upper End of Forecast Infineon Remains on Course for Success

Dr. Reinhard Ploss, CEO Infineon: »The demand for higher quality integrated systems continues to grow. This is why we are investing in the construction of a new 300 mm thin-wafer fab in Villach.«

The demand for chips in Infineon's target markets remains high, now even the dollar exchange rate is helping.

In the third quarter, Infineon generated revenues of EUR 1.94 billion and a segment result of EUR 356 million. The margin is 18.3 percent.  

The signs continue to point to growth: an increase in sales of around 3 percent is expected for the fourth quarter, which would then lead to annual sales that would be 6.4 to 7.4 percent higher than in 2017 and to a segment profit margin of 17.5 percent.

"The stronger dollar will give us additional momentum," said Dr. Reinhard Ploss, CEO of Infineon. "The automotive business is doing well. The market for electric mobility in particular remains a growth driver".

Drives for industrial machines and household and DIY appliances, which are increasingly battery-powered, also developed strongly. The demand for higher quality integrated systems will continue to increase. "As a reliable partner to our customers, we are preparing for this and are, in particular, investing in the construction of a new 300 millimeter thin-wafer factory for power semiconductors at the Villach site," says Ploss.

The Segment Results

Sales in the Automotive (ATV) segment rose by 3 percent to EUR 836 million, mainly due to higher demand from the electric drive sector. In the Industrial Power Control (IPC) segment, Infineon recorded an increase of 10 percent to EUR 349 million. Sales in the Power Management &Multimarket (PMM) segment rose by 7 percent to EUR 580 million. Demand came from many market sectors, including power supplies for servers, DIY equipment, eScooters, and integrated systems for mobile devices.
Chipcard & Security turnover improved from 164 million euro in the second quarter to 175  million euros in the third quarter.

High Investment

Investments in tangible and intangible assets including capitalized development costs of approximately EUR 1.2 billion are planned for fiscal 2018. The ratio of investments to the center of the forecast sales margin for the 2018 financial year should be around 16 percent. This is due to high investments in additional production capacities, in particular also for products in the field of electric mobility. Depreciation is expected to amount to approximately 850 million euros.

Dr. Reinhard Ploss, CEO Infineon: "The demand for higher quality integrated systems continues to grow. This is why we are investing in the construction of a new 300 mm thin-wafer fab in Villach."