Slight increase in revenue and earnings in Q3 FY 2024: Infineon

Infineon Technologies AG has reported results for the third quarter of its 2024 fiscal year (period ended 30 June 2024). “In a market environment that remains challenging, Infineon continues to hold up well,” says Jochen Hanebeck, CEO of Infineon.

“The recovery in our target markets is progressing only slowly. Prolonged weak economic momentum has resulted in inventory levels in many areas overlaying end demand. In addition to managing the current demand cycle, we are working on further strengthening our competitiveness through the “Step Up” structural improvement program.”

Group performance in the third part of the 2024 fiscal year In the third quarter of the 2024 fiscal year, Infineon’s Group revenue improved slightly to €3,702 million, up 2 percent from the revenue generated in the prior period of €3,632 million.

The main contributors to this increase in revenue were the Automotive (ATV) and Power & Sensor Systems (PSS) segments. Revenue in the Green Industrial Power (GIP) and Connected Secure Systems (CSS) segments was virtually unchanged from the previous time.

The reconciliation of cost of goods sold to adjusted cost of goods sold and adjusted gross margin is presented on page 10. 2 The calculation for earnings per share and adjusted earnings per share is based on unrounded figures. 3 The reconciliation of profit (loss) for the period to adjusted profit (loss) for the period and adjusted earnings per share is presented on page 9.

The gross margin in the third part of the current fiscal year rose to 40.2 percent, compared with 38.6 percent in the prior quarter. The adjusted gross margin increased to 42.2 percent, compared with 41.1 percent in the second quarter. The Segment Result improved in the third quarter of the 2024 fiscal year to €734 million, from €707 million in the prior quarter. The Segment Result Margin rose to 19.8 percent, from 19.5 percent in the second quarter.

The Non-Segment Result for the third quarter of the 2024 fiscal year was a net loss of €215 million, compared with a net loss of €211 million in the prior quarter. The third part Non-Segment Result comprised €71 million relating to cost of goods sold, €15 million relating to research and development expenses and €54 million relating to selling, general and administrative expenses. In addition, it included net other operating expenses of €75 million.

A significant component of this figure corresponded to write downs of plant and machinery at the Regensburg site that can now only be used to a limited extent or not at all in connection with the “Step Up” structural improvement program. In the third quarter of the 2024 fiscal year, operating profit improved to €519 million, up from €496 million in the prior quarter.

The financial result in the third quarter of the current fiscal year was a net loss of €30 million, compared with a net loss of €12 million in the preceding quarter.