07.05.2019 Infineon Technologies AG  DE0006231004

DGAP-News: Infineon Technologies AG: SECOND-QUARTER REVENUE AND EARNINGS IN LINE WITH EXPECTATIONS, CHALLENGING MARKET ENVIRONMENT PERSISTS


 

DGAP-News: Infineon Technologies AG / Key word(s): Quarterly / Interim Statement/Forecast
Infineon Technologies AG: SECOND-QUARTER REVENUE AND EARNINGS IN LINE WITH EXPECTATIONS, CHALLENGING MARKET ENVIRONMENT PERSISTS

07.05.2019 / 07:30
The issuer is solely responsible for the content of this announcement.


 

- Q2 FY 2019: REVENUE OF EUR1,983 MILLION; SEGMENT RESULT EUR332 MILLION; SEGMENT RESULT MARGIN 16.7 PERCENT

- OUTLOOK FOR Q3 FY 2019: BASED ON AN ASSUMED EXCHANGE RATE OF US$1.15 TO THE EURO, REVENUE IS EXPECTED TO GROW BY 1 PERCENT (PLUS OR MINUS 2 PERCENTAGE POINTS) QUARTER-ON-QUARTER AND HENCE BELOW THE USUAL SEASONAL RATE. THE SEGMENT RESULT MARGIN SHOULD COME IN AT 15 PERCENT AT THE MID-POINT OF THE REVENUE GUIDANCE

- OUTLOOK FOR FY 2019: REVENUE OF EUR8 BILLION (PLUS OR MINUS 2 PERCENT) EXPECTED WITH A SEGMENT RESULT MARGIN OF 16 PERCENT AT THE MID-POINT OF THE REVENUE GUIDANCE

Neubiberg, Germany - 7 May 2019 - Infineon Technologies AG today is reporting results for the second quarter of the 2019 fiscal year (period ended 31 March 2019).

"Infineon's robust business model has enabled us to perform well during the second quarter, despite a significant slowdown of the market", stated Dr. Reinhard Ploss, CEO of Infineon. "The boom is over for the time being, the momentum in demand has weakened. At the end of March, we responded to this trend by adjusting our outlook for the year and prepared for a lower level of growth. At the same time, we have acted consistently to successfully manage the current cycle and cut costs. We will continue to pursue strategic investment initiatives with the aim of safeguarding Infineon's future. This is driven by the excellent long-term prospects in our key target markets, which include electro mobility, autonomous driving, renewable energy, data centers and mobile communications."
 

Euro in millions Q2 FY19 Q1 FY19 +/- in %
       
Revenue 1,983 1,970 1
Segment Result 332 359 (8)
Segment Result Margin 16.7% 18.2%  
Income (loss) from continuing operations 249 254 (2)
Income (loss) from discontinued operations, net of income taxes (18) - ---
Net income 231 254 (9)
       
in Euro      
Basic earnings (loss) per share from continuing operations1 0.22 0.22 -
Basic earnings (loss) per share from discontinued operations1 (0.02) - ---
Basic earnings per share1 0.20 0.22 (9)
       
Diluted earnings (loss) per share from continuing operations1 0.22 0.22 -
Diluted earnings (loss) per share from discontinued operations1 (0.02) - ---
Diluted earnings per share1 0.20 0.22 (9)
       
Adjusted earnings per share diluted2 0.24 0.24 -
       
Gross margin 37.8% 39.5%  
Adjusted gross margin2 38.5% 40.4%  
 

1 The calculation for earnings per share and for adjusted earnings per share is based on unrounded figures.

2 The reconciliation of net income to adjusted net income and adjusted earnings per share as well as of cost of goods sold to adjusted cost of goods sold and adjusted gross margin can be found in the quarterly information at www.infineon.com.

With effect from the beginning of 2019 fiscal year, Infineon is applying IFRS 15 (Revenue from Contracts with Customers) and IFRS 9 (Financial Instruments) using the modified retrospective approach. As a result, prior periods are not adjusted to the new accounting policies. Overall, the first-time application of these Standards has not had any material impact.

 

GROUP PERFORMANCE IN SECOND QUARTER OF 2019 FISCAL YEAR
In the second quarter of the 2019 fiscal year, revenue grew by 1 percent from EUR1,970 million to EUR1,983 million quarter-on-quarter. Revenue was up in the Automotive (ATV) and Digital Security Solutions (DSS) segments, marginally down in the Industrial Power Control (IPC) segment and somewhat more significantly down in the Power Management & Multimarket (PMM) segment.

The gross margin fell from 39.5 percent in the first quarter to 37.8 percent in the second. Included therein are acquisition-related depreciation and amortization as well as other expenses totaling EUR15 million, mainly relating to the International Rectifier acquisition. The adjusted gross margin came in at 38.5 percent, compared to 40.4 percent in the previous quarter. The second-quarter Segment Result amounted to EUR332 million, compared to the previous quarter's EUR359 million. The Segment Result Margin dropped from 18.2 percent to 16.7 percent quarter-on-quarter.

The non-segment result for the three-month period was a net loss of EUR27 million, compared to a net loss of EUR32 million in the previous quarter. The second-quarter non-segment result comprises EUR15 million of cost of goods sold, EUR11 million of selling, general and administrative expenses, and EUR1 million of research and development expenses.

Operating profit in the second quarter of the 2019 fiscal year amounted to EUR305 million, compared to EUR327 million in the previous three-month period. Income tax expense for the second quarter decreased from EUR56 million to EUR46 million. Income from continuing operations remained about stable at EUR249 million in the second quarter, compared to EUR254 million one quarter earlier.

Due mainly to the adjustment of provisions in connection with the insolvency of Qimonda, the result from discontinued operations was a net loss of EUR18 million, compared to the break-even result in the previous quarter. Infineon assumes that proceedings relating to the alleged activation of a shell company and liability for impairment of capital are likely to be lengthier than so far anticipated. Net income for the second quarter of the current fiscal year amounted to EUR231 million, compared to EUR254 million in the previous quarter.

Quarter-on-quarter, earnings per share from continuing operations remained unchanged at EUR0.22 (basic and diluted). Similarly, adjusted earnings per share3 (diluted) were unchanged at EUR0.24.

Investments - which Infineon defines as the sum of purchases of property, plant and equipment, purchases of intangible assets and capitalized development assets - decreased to EUR349 million in the second quarter of the current fiscal year. In the previous quarter, investments had amounted to EUR408 million. Depreciation and amortization rose slightly from EUR230 million to EUR233 million quarter-on-quarter.

Free cash flow from continuing operations amounted to negative EUR137 million compared to negative EUR221 million in the first quarter of the 2019 fiscal year. The figure reported for the first three months of the current fiscal year had included an outflow of EUR123 million arising in conjunction with the acquisition of Siltectra in November 2018. Net cash provided by operating activities from continuing operations in the second quarter amounted to EUR215 million, down from EUR310 million in the preceding three-month period.

At the end of the second quarter of the 2019 fiscal year, the gross cash position stood at EUR1,882 million, down from EUR2,306 million at 31 December 2018. The net cash position amounted to EUR333 million, compared to EUR773 million three months earlier. In February 2019, Infineon paid a dividend of EUR0.27 per share, resulting in a total distribution of EUR305 million.

OUTLOOK FOR THE THIRD QUARTER OF THE 2019 FISCAL YEAR
Based on an assumed exchange rate of US$1.15 to the euro, Infineon expects revenue to grow by 1 percent quarter-on-quarter (plus or minus 2 percentage points) in the third quarter of the 2019 fiscal year. At the mid-point of the revenue guidance, the Segment Result Margin is predicted to come in at about 15 percent.

OUTLOOK FOR THE 2019 FISCAL YEAR
For the 2019 fiscal year as a whole, Infineon expects to generate revenue of EUR8.0 billion, plus or minus 2 percent. This corresponds to a forecast increase of just over 5 percent over the previous fiscal year, where revenue had amounted to EUR7.6 billion. The outlook is based on an assumed EUR/USD exchange rate of 1.15 for the remainder of the year. Revenue growth in the Automotive and Industrial Power Control segments is expected to exceed the Group average. Power Management & Multimarket segment revenue is likely to grow at a slightly slower pace than the Group average. Revenue for the Digital Security Solutions segment is likely to decrease by a mid-single-digit percentage year-on-year. The Segment Result Margin is predicted to be in the region of 16 percent at the mid-point of the revenue guidance.

Investments in property, plant and equipment, intangible assets and capitalized development costs are planned at approximately EUR1.5 billion for the 2019 fiscal year. The figure includes the cost of constructing the cleanroom for the future 300-millimeter production facility in Villach. Depreciation and amortization are expected to be in the region of EUR1 billion, whereby approximately EUR90 million of that amount relates to amortization resulting from purchase price allocations, primarily for International Rectifier.

3 Adjusted net income and adjusted earnings per share (diluted) should not be seen as a replacement or superior performance indicator, but rather as additional information to the net income and earnings per share (diluted) determined in accordance with IFRS.

Infineon's segments' performance in the second quarter of the 2019 fiscal year can be found in the quarterly information at www.infineon.com.

All figures in this quarterly information are preliminary and unaudited.

ANALYST TELEPHONE CONFERENCE AND PRESS TELEPHONE CONFERENCE
Infineon will host a telephone conference call including a webcast for analysts and investors (in English only) on 7 May 2019 at 9:30 am (CEST), 3:30 am (EDT). During the call, the Infineon Management Board will present the Company's results for the second quarter and the outlook for the third quarter of the 2019 fiscal year as well as for the 2019 fiscal year. In addition, the Management Board will host a telephone press conference with the media at 11:00 am (CEST), 5:00 am (EDT). It can be followed over the Internet in both English and German. Both conferences will also be available live and for download on Infineon's website at www.infineon.com/investor.

The Q2 Investor Presentation is available (in English only) at:
https://www.infineon.com/cms/en/about-infineon/investor/reporting/quarterly-financial-results/


INFINEON FINANCIAL CALENDAR (* preliminary)

- 8 May 2019 PCIM trade show; IPC Business Update by Dr. Peter Wawer, Division President IPC and Dr. Peter Friedrichs, Technology Development Silicon Carbide, Nuremberg

- 22 May 2019 JP Morgan European TMT Conference, London

- 29 May 2019 UBS Best of Europe One-on-One Conference, New York

- 3 Jun 2019 Berenberg Innovation Conference, Zurich

- 4 Jun 2019 Equita 14th European Conference, Milan

- 5 Jun 2019 Deutsche Bank German, Swiss & Austrian Conference, Berlin

- 11 Jun 2019 Exane 21st European CEO Conference, Paris

- 1 Aug 2019* Earnings Release for the Third Quarter of the 2019
Fiscal Year

- 29 Aug 2019 Commerzbank Sector Conference, Frankfurt

- 23 Sep 2019 Berenberg Goldman Sachs German Corporate Conference, Unterschleißheim nearby Munich

- 24 Sep 2019 Baader Investment Conference, Munich

- 7 Oct 2019 ATV Presentation by Peter Schiefer, Division President ATV, London

- 12 Nov 2019* Earnings Release for the Fourth Quarter and the 2019
Fiscal Year

ABOUT INFINEON
Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon is the key to a better future. In the 2018 fiscal year (ending 30 September), the Company reported sales of EUR7.6 billion with about 40.100 employees worldwide. Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY).

Further information is available at www.infineon.com
This press release is available online at www.infineon.com/press

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D I S C L A I M E R
This press release contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group.

These statements are based on assumptions and projections resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks. Actual business development may therefore differ materially from what has been expected.

Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements.

Due to rounding, numbers presented throughout this press release and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.




Contact:
Bernd Hops, Media Relations, phone: +49 89 234-24123, fax: +49 89 234-154123


07.05.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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Language: English
Company: Infineon Technologies AG
Am Campeon 1-15
85579 Neubiberg
Germany
Phone: +49 (0)89 234-26655
Fax: +49 (0)89 234-955 2987
E-mail: [email protected]
Internet: www.infineon.com
ISIN: DE0006231004
WKN: 623100
Indices: DAX, TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 807463

 
End of News DGAP News Service

807463  07.05.2019 

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Die wichtigsten Finanzdaten auf einen Blick
  2015 2016 2017 2018 2019 2020 2021e
Umsatzerlöse1 5.795,00 6.473,00 7.063,00 7.599,00 8.000,00 8.567,00 0,00
EBITDA1,2 1.315,00 1.596,00 1.795,00 2.330,00 2.360,00 1.841,00 0,00
EBITDA-Marge3 22,69 24,66 25,41 30,66 29,50 21,49 0,00
EBIT1,4 555,00 763,00 983,00 1.469,00 1.380,00 581,00 0,00
EBIT-Marge5 9,58 11,79 13,92 19,33 17,25 6,78 0,00
Jahresüberschuss1 634,00 743,00 790,00 1.075,00 1.080,00 368,00 0,00
Netto-Marge6 10,94 11,48 11,19 14,15 13,50 4,30 0,00
Cashflow1,7 817,00 1.313,00 1.728,00 1.575,00 1.605,00 1.811,00 0,00
Ergebnis je Aktie8 0,56 0,66 0,70 0,95 0,75 0,26 1,02
Dividende8 0,20 0,22 0,25 0,27 0,27 0,22 0,26
Quelle: boersengefluester.de und Firmenangaben

  Geschäftsbericht 2020 - Kostenfrei herunterladen.  
1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de

Wirtschaftsprüfer: KPMG

INVESTOR-INFORMATIONEN
©boersengefluester.de
Infineon
WKN Kurs in € Einschätzung Börsenwert in Mio. €
623100 37,580 Halten 49.076,52
KGV 2022e KGV 10Y-Ø BGFL-Ratio Shiller-KGV
29,13 25,45 1,14 64,24
KBV KCV KUV EV/EBITDA
5,62 27,10 5,73 29,13
Dividende '19 in € Dividende '20e in € Div.-Rendite '20e
in %
Hauptversammlung
0,27 0,22 0,59 17.02.2022
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
04.02.2021 04.05.2021 03.08.2021 10.11.2021
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
8,41% 10,95% 19,72% 63,60%
    
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Halbleiter , 623100 , IFX , XETR:IFX