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Infineon Q3 Marks Strong Growth in Automotive Sector

Margin improved slightly, from 23.1 percent in the second quarter to 23.3 percent in the third quarter.

In Infineon’s third quarter of the 2022 fiscal year, Group revenue grew by €320 million or 10 percent to €3,618 million, compared with €3,298 million in the previous three-month period. There was a significant increase in revenue in the Automotive (ATV) and Power & Sensor Systems (PSS) segments, as well as a slight increase in the Industrial Power Control (IPC) and Connected Secure Systems (CSS) segments. The gross margin in the third quarter of the current fiscal year was 43.2 percent, compared with 42.9 percent in the preceding quarter. The adjusted gross margin remained unchanged at 45.4 percent. The Segment Result in the third quarter was €842 million, compared with €761 million in the second quarter of the 2022 fiscal year.

Jochen
Jochen Hanebeck, Chief Executive Officer of Infineon

Margin improved slightly, from 23.1 percent in the second quarter to 23.3 percent in the third quarter. The third-quarter non-segment result was a net loss of €152 million, compared with a net loss of €143 million in the second quarter. The non-segment result for the third quarter comprised €78 million relating to cost of goods sold, €62 million relating to selling, general and administrative expenses and €7 million relating to research and development expenses. Also included in the total for the third quarter were net other operating expenses of €5 million.

Operating profit for the third quarter of the 2022 fiscal year was €690 million, up from €618 million in the previous three-month period. The financial result was a net financial loss of €40 million, compared with a net financial loss of €43 million in the second quarter of the 2022 fiscal year.

The tax expense in the third quarter of the current fiscal year was €134 million, compared with €121 million in the preceding quarter. Profit from continuing operations improved in the third quarter of the current fiscal year to €525 million, up from €469 million in the previous quarter. The result from discontinued operations in the third quarter was a loss of €8 million (second quarter: €0 million). The profit for the period in the third quarter of the 2022 fiscal year was €517 million, up from €469 million in the previous quarter. Basic earnings per share from continuing operations rose in the third quarter of the current fiscal year to €0.40, compared with €0.36 in the previous quarter. Diluted earnings per share from continuing operations increased from €0.35 in the second quarter to €0.40 in the third quarter. Adjusted earnings per share1 (diluted) improved from €0.44 in the second quarter to €0.49 in the third quarter of the current fiscal year.

Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – rose to €542 million in the third quarter of the current fiscal year, compared with €494 million in the preceding three-month period. Depreciation and amortization in the third quarter was €422 million, compared with €405 million in the second quarter of the 2022 fiscal year.

“In a difficult macroeconomic climate, Infineon continues to be well on the way thanks to its differentiating portfolio,” said Jochen Hanebeck, Chief Executive Officer of Infineon. “Increases in energy costs, raw material prices and interest rates, the continuing pandemic and geopolitical uncertainties are all impeding economic growth. In some consumer-oriented end markets demand has recently weakened. We are keeping a close eye on market developments and are prepared to act swiftly. However, the structural drivers decarbonization and digitalization continue to cause high demand for semiconductors. The global trend towards electromobility persists. Many countries are now seeking to secure independent energy supplies, which will further accelerate the expansion of renewable energy. We are also benefiting from continuing high levels of investment in communications infrastructure, data centers and cloud computing.”

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Nitisha Dubey

I am a Journalist with a post graduate degree in Journalism & Mass Communication. I love reading non-fiction books, exploring different destinations and varieties of cuisines. Biographies and historical movies are few favourites.

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