3Q/2011 revenues above expectations for Infineon
Overview- Sales up 5 percent sequentially driven by strength in ATV and IMM- Increase of Total Segment Result1 by 5 percent to Euro 212 million- 4Q 2011 outlook: Broadly flat Segment Result, sales expected to be at least flatTotal Segment Result margin remained at last quarter’s high levels. “Our excellent results continue to prove that Infineon’s focus on energy efficiency, mobility and security is the right strategy”, says Peter Bauer, CEO of Infineon Technologies. Infineon will further extend its technology leadership by driving 300mm thin wafer manufacturing of power semiconductors out of the newly-acquired facility in Dresden. “With this leading innovation Infineon will expand its competitive advantage,” says Peter Bauer. In order to fully exploit Infineons growth potential, the Company will also expand the cost efficient 200mm manufacturing site in Kulim, Malaysia.Fiscal third quarter 2011: Growth in IMM and ATV drives sales and Total Segment ResultInfineon booked fiscal third quarter sales of Euro 1,043 million in the 2011 fiscal year, an increase of 5 percent from the previous quarter. At a constant exchange rate for the U.S. Dollar against the Euro, Infineon’s quarter-over-quarter growth rate would have been approximately two percentage points higher.The original guidance called for flat revenues. Sales growth was driven by strong demand in Industrial & Multimarket (IMM) as well as revenue growth in Automotive (ATV). Counter to original expectations, the ATV division did not experience any significant negative impact neither on revenue nor on Segment Result from disruptions within the automotive supply chain after the Japan earthquake.Expansion of production capacityIn order to secure further growth, Infineon decided to begin building a shell for a second 200mm clean room at its existing, highly cost-competitive frontend site in Kulim, Malaysia. Capitalizing on its competitive lead in the manufacturing of power semiconductors on 300mm wafers, Infineon furthermore resolved that it will use the clean room that was purchased in May 2011 for about Euro 101 million from the insolvency administrator of Qimonda Dresden GmbH & Co. OHG for the mass manufacturing of power devices on 300mm wafers.Until 2014 Infineon will invest around Euro 250 million and create approximately 250 jobs in Dresden. If the market, revenue and underlying conditions develop in line with forecasts, further expansion would be possible.Outlook for fourth quarter of the 2011 fiscal year: Sales expected to be at least flat; Total Segment Result to be about flat in absolute termsInfineon expects sales for the fourth quarter of the 2011 fiscal year to be at least flat compared to the third quarter of the current fiscal year. Within this outlook, the Company expects a further increase in revenues in Industrial & Multimarket (IMM), broadly flat turnover in Chip Card & Security (CCS) and a seasonal sales decline in Automotive (ATV). Total Segment Result is expected to remain broadly flat in absolute terms from the levels reached in the third quarter of the 2011 fiscal year.