DGAP-News: Infineon Technologies AG: Infineon resumes growth - profit margin better than expected
ID: 1110027
(firmenpresse) - DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results
Infineon Technologies AG: Infineon resumes growth - profit margin
better than expected
03.05.2012 / 07:30
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Quarter Results / Final Results
Infineon reports results for the second quarter of the 2012 fiscal year
INFINEON RESUMES GROWTH - PROFIT MARGIN BETTER THAN EXPECTED
SECOND-QUARTER REVENUE AHEAD OF FORECAST AND 4 PERCENT UP ON PREVIOUS
QUARTER TO EURO 986 MILLION
SEGMENT RESULT MARGIN AT 14.6 PERCENT SLIGHTLY BETTER THAN FORECAST
OUTLOOK FOR THIRD QUARTER: REVENUE AND SEGMENT RESULT MARGIN EXPECTED TO BE
BROADLY FLAT
OUTLOOK FOR FULL FISCAL YEAR: LOW SINGLE-DIGIT PERCENTAGE DECLINE IN
REVENUE EXPECTED WITH MID-TEENS PERCENTAGE SEGMENT RESULT MARGIN
Neubiberg, Germany - May 3, 2012 - Infineon Technologies AG today reported
results for the second quarter of the 2012 fiscal year, ended March 31,
2012.
in Euro million Q2 FY12 Q1 FY12 +/- in'Business was better in the second quarter than expected. Three out of
%
Revenue 986 946 4
Segment Result 144 141 2
Segment Result Margin [in %] 14,6% 14.9%
Income (loss) from continuing operations 109 104 5
Income (loss) from discontinued operations, net 2 (8) 125
of income taxes
Net income 111 96 16
in Euro
Basic earnings (loss) per share from continuing 0.10 0.10 -
operations
Basic earnings (loss) per share from - (0.01) 100
discontinued operations
Basic earnings per share 0.10 0.09 11
Diluted earnings (loss) per share from 0.10 0.10 -
continuing operations
Diluted earnings (loss) per share from - (0.01) 100
discontinued operations
Diluted earnings per share 0.10 0.09 11
four segments increased revenue. Our focus on key challenges for today's
society - energy efficiency, mobility and security - is also proving its
worth during difficult economic times', says Peter Bauer, CEO of Infineon
Technologies AG. 'Our investments secure growth and profitability in the
long term.'
GROWTH AND MARGINS
After a sequential decline in revenue in the first quarter of the current
fiscal year, the second quarter - with the exception of the Industrial
Power Control segment, for which demand continued to fall in line with the
late-cycle nature of this business - saw a resumption of sequential revenue
growth. Once again, Infineon performed better than the market as a whole.
Second-quarter revenue rose 4 percent compared to the preceding quarter,
despite the fact that sales volume in Infineon's addressable market
(semiconductor industry revenue excluding memory chips and microprocessors)
contracted by 1 percent.
Thanks to its earnings strength and liquidity position, Infineon is able to
continue its targeted strategy of counter-cyclical investments. In addition
to expanding capacity, the Company is also increasing levels of expenditure
on research and development as well as on sales and marketing, with the
ultimate aim of securing future growth and increasing market share. Despite
some mixed trends in worldwide demand, the Segment Result Margin for the
Infineon Group as a whole came in at 14.6 percent in the second quarter,
again roughly in line with the 15 percent target margin over the economic
cycle. Infineon has also been successful in terms of market share. Over the
past year, we have managed to increase our market share in the Automotive
sector by one full percentage point to 9.8 percent . Infineon has therefore
gained more market share than any other competitor and further consolidated
its market position as the second largest manufacturer in this sector.
Owing to a small increase in capital employed, the return on capital
employed (RoCE) slipped from 27 percent in the first quarter to 25 percent
in the second quarter. Nonetheless, RoCE remains significantly higher than
the cost of capital.
CAPITAL RETURN
Shareholders are able to participate in the Group's sustainable, profitable
growth in a number of ways, including favorable developments in Infineon's
share price, dividends and the buyback of convertible bonds and shares.
During the last quarter, Infineon paid a dividend of Euro 130 million for
the 2011 fiscal year (previous year: Euro 109 million). Including the
buyback of convertible bonds and shares, Infineon has returned some Euro
508 million to the capital market since the beginning of the 2011 fiscal
year.
OUTLOOK FOR THIRD QUARTER OF FY 2012
The outlook is based on the assumption that the Euro/US Dollar exchange
rate will remain at a similar level to the average of the first half of the
current fiscal year. The forecast for the third quarter of the current
fiscal year is for broadly flat revenue and a Segment Result Margin similar
to the level recorded in the second quarter. The distribution of revenue
over the various segments is not expected to change significantly, however,
the combined revenue of Other Operating Segments (OOS) and Corporate and
Eliminations (C&E) is expected to decrease.
OUTLOOK FOR FULL FY 2012: HIGHER TARGETS FOR REVENUE AND SEGMENT RESULT
MARGIN
Based on the assumption that the Euro/US Dollar exchange rate will be
largely unchanged compared to the first half of the year, Infineon now
forecasts that revenue in the 2012 fiscal year will only fall by a low
single-digit percentage rate compared to the fiscal year 2011. Revenue had
previously been predicted to drop by a mid-single-digit percentage rate.
In the same vein, the Segment Result Margin for the 2012 fiscal year is now
expected to be a mid-teens percentage. Previously, the forecast had been
for a low to mid-teens percentage margin.
Investments are forecasted to be at a similar level to the 2011 fiscal
year, unchanged from the previous forecast. The expense for depreciation
and amortization in the 2012 fiscal year is expected to be in the region of
Euro 440 million.
DETAILS WITH REGARD TO GROUP EARNINGS IN THE SECOND QUARTER OF FY 2012
Group revenue rose by 4 percent from Euro 946 million in the first quarter
2012 to Euro 986 million in the second quarter of the 2012 fiscal year.
The Automotive (ATV), Power Management&Multimarket (PMM) and Chip Card&Security (CCS) segments all contributed to second-quarter growth. The
Euro/US Dollar exchange rate also had a positive impact on revenue. By
contrast, revenue generated by the Industrial Power Control (IPC) segment
decreased.
Infineon's second-quarter Segment Result rose to Euro 144 million, compared
with Euro 141 million recorded in the previous quarter. The Segment Result
Margin slipped marginally from 14.9 percent in the first quarter to 14.6
percent in the second quarter. The expansion of capacities pushed the
expense for depreciation and amortization up from Euro 97 million (Q1 FY
2012) to Euro 103 million (Q2 FY 2012). Operating expenses also went up
slightly, with the combined total of research and development, selling and
administrative expenses up from Euro 224 million to Euro 227 million.
Infineon reported income from continuing operations of Euro 109 million, up
from Euro 104 million in the previous quarter. Interest expenses included
in that figure were slightly lower than in the previous quarter since there
were no buybacks of convertible bonds in the second quarter. The tax
expense was also slightly lower.
Earnings per share from continuing operations (basic and diluted) remained
unchanged from the previous quarter, at Euro 0.10 per share.
Income from discontinued operations went up in the second quarter of the
2012 fiscal year to Euro 2 million, compared to the loss of Euro 8 million
reported one quarter earlier.
Basic and diluted earnings per share from discontinued operations improved
to Euro 0,00 compared with a loss per share (basic and diluted) of Euro
0.01 in the previous quarter.
Net income increased to Euro 111 million in the second quarter after the
previous quarter's Euro 96 million. Earnings per share were Euro 0.10
compared with Euro 0.09 one quarter earlier (basic and diluted).
Investments - which the Company defines as the sum of purchases of
property, plant and equipment, purchases of intangible assets and
capitalized research and development assets - amounted to Euro 192 million
and were therefore Euro 102 million lower than the previous quarter's
figure of Euro 294 million. Depreciation and amortization developed as
expected, increasing from Euro 97 million in the first quarter to Euro 103
million in the second quarter.
Free cash flow from continuing operations improved significantly from
negative Euro 234 million in the first quarter to negative Euro 10 million
in the second. The main factor for this was the lower level of investments.
Other factors contributing to the improvement were increased net income,
higher depreciation and amortization as well as lower inventories and bonus
payments.
The dividend for the 2011 fiscal year, totalling Euro 130 million, was paid
on March 9, 2012, and reduced both the gross and the net cash position. The
gross cash position went down by Euro 147 million from Euro 2,337 million
at December 31, 2011 to Euro 2,190 million at March 31, 2012. The net cash
position decreased by Euro 141 million, finishing the second quarter at
Euro 1,927 million compared with Euro 2,068 million at the end of the
previous quarter.
Infineon segments' performance in the second quarter of the 2012 fiscal
year can be found in the quarterly information at http://www.infineon.com
All figures in this quarterly information are preliminary and unaudited.
ANALYST AND PRESS TELEPHONE CONFERENCES
Infineon Technologies AG will conduct a telephone conference (in English
only) with analysts and investors on May 3, 2012, at 10:00 a.m. Central
European Summer Time (CEST), 4:00 a.m. Eastern Daylight Time (US EDT), to
discuss operating performance during the second quarter of the 2012 fiscal
year. In addition, the Infineon Management Board will host a telephone
conference with the media at 11:30 a.m. (CEST), 5:30 a.m. (US EDT). It can
be followed in German and English over the Internet. Both conferences will
be available live and for download on the Infineon web site at
www.infineon.com/investor .
Please find the Q2 Investor Presentation on our web site at
http://www.infineon.com/cms/en/corporate/investor/reporting/index.html
IFX FINANCIAL CALENDAR (*PRELIMINARY DATE)
- Jun 5, 2012 DZ Bank Sustainability Technologies Conference, Zurich,
Switzerland
- Jul 31, 2012* Earnings Release for the Third Quarter of the 2012 Fiscal
Year
- Aug 29 - 30, 2012 Commerzbank Sector Conference Week, Frankfurt,
Germany
- Sep 13, 2012 JPMorgan Pan Euro Tech Conference, London, UK
- Sep 26, 2012 Baader Investment Conference, Munich, Germany
- Nov 14, 2012* Earnings Release for the Fourth Quarter and Full 2012
Fiscal Year
- Nov 15 - 16, 2012 Morgan Stanley TMT Conference, Barcelona, Spain
- Nov 27 - 28, 2012 Credit Suisse Technology Conference, Scottsdale, USA
ABOUT INFINEON
Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and
system solutions addressing three central challenges to modern society:
energy efficiency, mobility, and security. In the 2011 fiscal year (ending
September 30), the Company reported sales of Euro 4.0 billion with close to
26,000 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).
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.
End of Corporate News
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Language: English
Company: Infineon Technologies AG
Am Campeon 1-12
85579 Neubiberg
Germany
Phone: +49 (0)89 234-26655
Fax: +49 (0)89 234-955 2987
E-mail: investor.relations(at)infineon.com
Internet: www.infineon.com
ISIN: DE0006231004
WKN: 623100
Indices: DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart; Terminbörse EUREX
End of News DGAP News-Service
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