Following a sharp rise in profits for its financial year to the end of September, and a 28% increase in y-o-y Q3 sales, Infineon is raising the dividend payment it announced in February by 20%.
FY 2011 saw Infineon pay a dividend for the first time in ten years. The company’s February AGM settled on a 0.10c for FY2010 dividend costing €109m. Today’s new level of dividend is 0.12c costing €130m.
“The aim of our dividend strategy is to pay our shareholders a sustainable dividend throughout the market cycle and thus enable them to participate continuously in our company’s success,” says Infineon’s CEO, Peter Bauer, “our shareholders will also benefit from further share and bond buybacks. In addition to the dividend payments we will commit a further total of up to Euro 208 million between October 2011 and March 2013 as part of a capital returns program, which is already underway.”
The company is forecasting a drop in sales in its current financial year to the end of September 2012 particularly in the light of weaker orders from industrial and chip card customers.
The sales drop is forecast to be in the ‘mid single digit percentage’ range and is attributed to the likely effects of the Eurozone debt crisis.
Profit in FY 2011 was €1.12bn up from €659m in FY 2010.