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Infineon Reckons its 2019 Fiscal Year Revenue to be €8 BN

Infineon 2019 Revenue

In view of continued global economic uncertainties and weaker end-market demand, Infineon Technologies is adjusting its outlook for the 2019 fiscal year revenue and earnings downward.

Revenue is now expected to come in at 8.0 billion Euro, up from 7.6 billion Euro in the 2018 fiscal year, plus or minus 2 percent. The assumed USD exchange rate going forward continues to stand at 1.15.

The growth rate of the Automotive and Industrial Power Control divisions should come in above group average, whereas the Power Management & Multimarket division is expected to grow slightly less. For the Digital Security Solutions division, revenue is still assumed to decline by a mid-single-digit percent rate compared to the previous year.

Business indicators point to a slower demand recovery than expected thus far. A number of end markets continue to be sluggish; in particular, the trend of declining vehicle sales in China has accelerated in February, causing dealer inventories to increase sharply. Also, inventories in the broader distribution channel, in particular for Power Management & Multimarket in China have increased.

In the midpoint of the guided revenue range, the segment result margin should be 16 percent, versus 17.5 percent before. This figure includes idle costs resulting from reduced production volumes, only partially compensated by short-term measures aimed at stabilizing profitability.

In the current quarter ending on 31 March, revenue and segment result should come in as expected, i.e. constant revenue compared to the first fiscal quarter, plus or minus 2 percent, with a segment result margin of 16 percent. Despite a continued strong structural growth, Infineon now expects a lower than normal seasonal revenue increase in the second half of the 2019 fiscal year.

Investments will be kept for the time being at the projected level of about 1.5 billion Euros. This is predominantly due to business areas where current production capacity continues to be insufficient to satisfy demand, like electro-mobility.

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Jyoti Gazmer

A Mass Comm. graduate believes strongly in the power of words. A book lover who dreams to own a library some day. An introvert but will become your closest friend if you share mutual feelings about COFFEE. I prefer having more puppies over humans.

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