Infineon Looking To Automotive For Salvation
Infineon is looking to automotive IC sales to pull it out of a hole.
Infineon had calendar Q4 revenue of €851m – 13% down on Q3 – for a profit of €44m down on the €116m profit of Q3.
For the current quarter, Infineon expects growth of “a mid single digit percentage” (5?) and a “slightly” improved profit. It expects to see sharply increased revenues from automotive IC sales.
“Revenue and earnings are in line with our expectations and cost saving measures are beginning to take effect,” says Reinhard Ploss, Infineon’s CEO, ” as long as the global economy does not stall, business should continue to pickup as expected. Our delivery capability at top quality levels will enable us to take advantage of the chances the market offers.”
Infineon has seen weakening orders the industrial sector and from the wind turbine industry causing it to postpone or cancel development projects. Net cash fell to €1.77bn from €1.94bn in Q3.
Income from continuing operations in the first quarter of the 2013 fiscal year amounted to €26m down from €129m in Q3.
Overall, net income fell from €138m in Q3 to €19m in Q4.
Free cash flow from continuing operations deteriorated from positive €47m in Q3 to negative €128m in Q4.
The Industrial Power Control (IPC), Power Management & Multimarket (PMM), Chip Card & Security (CCS) and Other Operating (OOS) segments are all expected to report revenues at similar levels to the previous quarter, while the Automotive (ATV) segment is likely to see a distinct increase.