DGAP-News: Infineon Technologies AG: INFINEON CLOSES DECEMBER QUARTER WITH REVENUE DOWN AS FORECAST AND EARNINGS SLIGHTLY BETTER THAN EXPECTED. SLOWING GLOBAL ECONOMIC MOMENTUM DAMPENS OUTLOOK: REVENUE PREDICTED TO REMAIN STABLE IN MARCH QUARTER

2019. február 05., kedd, 07:30





DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results/Forecast


Infineon Technologies AG: INFINEON CLOSES DECEMBER QUARTER WITH REVENUE DOWN AS FORECAST AND EARNINGS SLIGHTLY BETTER THAN EXPECTED. SLOWING GLOBAL ECONOMIC MOMENTUM DAMPENS OUTLOOK: REVENUE PREDICTED TO REMAIN STABLE IN MARCH QUARTER


05.02.2019 / 07:30



The issuer is solely responsible for the content of this announcement.



 



- Q1 FY 2019: REVENUE EUR1,970 MILLION, SEASONAL QUARTER-ON-QUARTER DECREASE OF 4 PERCENT; SEGMENT RESULT EUR359 MILLION; SEGMENT RESULT MARGIN 18.2 PERCENT



- OUTLOOK FOR Q2 FY 2019: BASED ON AN ASSUMED EXCHANGE RATE OF US$ 1.15 TO THE EURO, REVENUE STABLE QUARTER-ON-QUARTER (PLUS OR MINUS 2 PERCENTAGE POINTS) AND SEGMENT RESULT MARGIN OF 16 PERCENT AT MID-POINT OF REVENUE GUIDANCE



- OUTLOOK FOR FY 2019: GIVEN DEVELOPMENTS IN THE FIRST TWO QUARTERS, REVENUE GROWTH NOW EXPECTED AT THE LOWER END OF THE FORECAST RANGE, WHICH CORRESPONDS TO YEAR-ON-YEAR GROWTH OF 9 PERCENT AT AN ASSUMED EXCHANGE RATE OF US$ 1.15 TO THE EURO. AT THIS REVENUE LEVEL, THE SEGMENT RESULT MARGIN SHOULD COME IN AT ABOUT 17.5 PERCENT



- INVESTMENTS IN FY 2019: PLANNED INVESTMENTS TO BE REDUCED BY BETWEEN EUR100 MILLION AND EUR200 MILLION IN LIGHT OF SLOWER RATE OF GROWTH



Neubiberg, Germany, 5 February 2019 - Infineon Technologies AG today reports results for the first quarter of the 2019 fiscal year (period ended 31 December 2018).



"So far we have been able to master the challenges of an increasingly difficult business environment well," stated Dr. Reinhard Ploss, CEO of Infineon. "Despite market headwinds, we expect to be able to grow by about 9 percent in the 2019 fiscal year and gain further market share on the back of healthy structural growth drivers. Our long-term growth prospects remain intact. We will therefore continue to pursue core projects such as the construction of the 300-millimeter cleanroom in Villach, but moderately reduce investments in manufacturing equipment."



























































































Euro in millions Q1 FY19 Q4 FY18 +/- in %
       
Revenue 1,970 2,047 (4)
Segment Result 359 400 (10)
Segment Result Margin 18.2% 19.5%  
Income (loss) from continuing operations 254 300 (15)
Income (loss) from discontinued operations, net of income taxes - (159) +++
Net income 254 141 80
       
in Euro      
Basic earnings (loss) per share from continuing operations1 0.22 0.27 (19)
Basic earnings (loss) per share from discontinued operations1 - (0.14) +++
Basic earnings per share1 0.22 0.13 69
       
Diluted earnings (loss) per share from continuing operations1 0.22 0.27 (19)
Diluted earnings (loss) per share from discontinued operations1 - (0.14) +++
Diluted earnings per share1 0.22 0.13 69
       
Adjusted earnings per share diluted2 0.24 0.28 (14)
       
Gross margin 39.5% 39.8%  
Adjusted gross margin2 40.4% 40.6%  

 

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 FIRST QUARTER OF 2019 FISCAL YEAR

Due to seasonal factors, revenue declined by 4 percent to EUR1,970 million in the first quarter of the 2019 fiscal year, compared to EUR2,047 million in the fourth quarter of the preceding fiscal year. Revenue was down slightly in the Automotive (ATV) and Industrial Power Control (IPC) segments. Compared to the Group average, the decline was somewhat more pronounced in the Power Management & Multimarket (PMM) segment and noticeably more pronounced in the Digital Security Solutions (DSS) segment.



The gross margin remained largely stable quarter-on-quarter, falling from 39.8 percent to 39.5 percent. Included therein are acquisition-related depreciation and amortization as well as other expenses totaling EUR16 million, mainly relating to the International Rectifier acquisition. The adjusted gross margin also remained virtually unchanged, coming in at 40.4 percent in the first quarter compared with 40.6 percent in the final quarter of the 2018 fiscal year.



The Segment Result for the first quarter of the current fiscal year amounted to EUR359 million, down from EUR400 million one quarter earlier. The Segment Result Margin decreased from 19.5 percent to 18.2 percent.



The non-segment result for the three-month period was a net loss of EUR32 million, compared to a net loss of EUR30 million in the previous quarter. The first-quarter non-segment result comprises EUR16 million of cost of goods sold, EUR15 million of selling, general and administrative expenses, and EUR1million of research and development expenses.



Operating income in the first quarter totaled EUR327 million, compared to the previous quarter"s EUR370 million. Income tax expense increased slightly from EUR54 million to EUR56 million. Income from continuing operations totaled EUR254 million, compared with EUR300 million in the fourth quarter of the 2018 fiscal year.



The result from discontinued operations for the first three months of the 2019 fiscal year was zero. In the previous quarter, the increase in provisions relating to the lawsuit brought by the Qimonda insolvency administrator for the alleged activation of a shell company and the liability for the impairment of capital had resulted in a net loss of EUR159 million. Net income improved accordingly from EUR141 million in the previous quarter to EUR254 million in the first quarter of the 2019 fiscal year.



Earnings per share from continuing operations for the first quarter of the current fiscal year amounted to EUR0.22 (basic and diluted), down from EUR0.27 one quarter earlier. Adjusted earnings per share[1] (diluted) declined from EUR0.28 to 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 slightly in the first quarter of the current fiscal year to EUR408 million, down from EUR417 million in the previous three-month period. Depreciation and amortization increased slightly from EUR226 million to EUR230 million.



Free cash flow from continuing operations amounted to minus EUR221 million, compared to a positive EUR227 million in the preceding quarter. The figure reported for the first three months of the current fiscal year includes 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 totaled EUR310 million, compared to EUR641 million in the fourth quarter of the 2018 fiscal year.



The gross cash position at the end of the first quarter of the 2019 fiscal year amounted to EUR2,306 million, compared to EUR2,543 million at 30 September 2018. The net cash position amounted to EUR773 million, compared to EUR1,011 million three months earlier.



OUTLOOK FOR THE SECOND QUARTER OF THE 2019 FISCAL YEAR

Based on an assumed exchange rate of US$ 1.15 to the euro in the second quarter of the 2019 fiscal year, Infineon forecasts that revenue will remain stable quarter-on-quarter (plus or minus 2 percentage points). At the mid-point of revenue guidance, the Segment Result Margin is expected to come in at about 16 percent.



OUTLOOK FOR THE 2019 FISCAL YEAR

Based on actual figures for the first quarter and forecast figures for the second quarter, Infineon now expects to reach the lower end of its predicted revenue range for the 2019 fiscal year, which corresponds to year-on-year revenue growth of 9 percent at an assumed exchange rate of US$ 1.15 to the euro. At this level, a Segment Result Margin of about 17.5 percent is expected. Revenue growth in the Automotive segment is predicted to exceed the Group average. The Industrial Power Control segment is forecast to grow in line with the Group average. Revenue growth in the Power Management & Multimarket segment is expected to be below the Group average. Due to the difficult market situation, revenue in the Digital Security Solutions segment is forecast to drop by a low- to mid-single digit percentage year-on-year.



Investments in property, plant and equipment, intangible assets and capitalized development costs are now planned at approximately EUR1.5 billion for the 2019 fiscal year, compared to the previously forecast range of EUR1.6 to 1.7 billion. The figure continues to include the construction of the cleanroom for the new 300-millimeter production facility in Villach. Depreciation and amortization are still 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.



Infineon"s segments" performance in the first 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 5 February 2019 at 9:30 am (CET), 3:30 am (EST). During the call, the Infineon Management Board will present the Company"s results for the first quarter and the outlook for the second quarter of the 2019 fiscal year. In addition, the Management Board will host a telephone press conference with the media at 11:00 am (CET), 5:00 am (EST). 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 Q1 Investor Presentation is available (in English only) at: http://www.infineon.com/cms/en/corporate/investor/reporting/



INFINEON FINANCIAL CALENDAR (* preliminary)



- 21 Feb 2019 Annual General Meeting, Munich



- 25 - 27 Feb 2019 Mobile World Congress; Barcelona



- 14 Mar 2019 Bryan, Garnier & Co. 4th Annual Technology Conference, Paris



- 5 Apr 2019 Bankhaus Lampe Conference, Baden-Baden



- 7 May 2019* Earnings Release for the Second Quarter of the 2019

Fiscal Year



- 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



- 4 Jun 2019 Equita 14th European Conference, Milan



- 4 Jun 2019 Berenberg Innovation Conference, Zurich



- 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 - 8 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.
[1] 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.






Contact:

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














05.02.2019 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: investor.relations@infineon.com
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





 
End of News DGAP News Service





772259  05.02.2019 



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