EQS-News: Infineon with robust Q1 FY 2024. Market environment outside automotive remains weak. Weaker currency and markets are leading to an adjustment of FY 2024 outlook
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EQS-News: Infineon Technologies AG
/ Key word(s): Quarter Results/Forecast
Neubiberg, 6 February 2024 – Today, Infineon Technologies AG is reporting results for the first quarter of the 2024 fiscal year (period ended 31 December 2023).
"In the prevailing difficult macroeconomic climate, Infineon is proving robust," says Jochen Hanebeck, CEO of Infineon. "In consumer, communication, computing and IoT applications, we are not anticipating a noticeable recovery in demand until the second half of the calendar year. Our expectations for the automotive sector remain virtually unchanged from November, despite a slowdown in demand in electromobility outside China. As a company, we are consistently adapting to this situation, so that we meet our financial targets for the current fiscal year. At the same time, we remain committed to our major investments for the future, as we want to exploit the long-term growth opportunities arising from decarbonization and digitalization."
1 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. 2 The calculation for earnings per share and for adjusted earnings per share is based on unrounded figures.
GROUP PERFORMANCE IN THE FIRST QUARTER OF THE 2024 FISCAL YEAR In the first quarter of the 2024 fiscal year, Group revenue added up to €3,702 million. Compared with revenue in the prior quarter of €4,149 million, this was a decline of 11 percent. In all four segments revenue was lower than in the prior quarter.
The gross margin in the first quarter of the current fiscal year was 43.2 percent, compared with 43.6 percent in the prior quarter. The adjusted gross margin reached 44.9 percent, compared with 45.5 percent in the fourth quarter of the 2023 fiscal year.
The Segment Result in the first quarter of the 2024 fiscal year amounted to €831 million, compared with €1,044 million in the prior quarter. The Segment Result Margin was 22.4 percent, compared with 25.2 percent in the fourth quarter of the 2023 fiscal year.
The first-quarter Non-Segment Result was a net loss of €129 million, compared with a net loss of €132 million in the prior quarter. The Non-Segment Result for the first quarter comprised €65 million relating to cost of goods sold, €16 million relating to research and development expenses and €54 million relating to selling, general and administrative expenses, as well as net other operating income of €6 million.
Operating profit for the first quarter of the 2024 fiscal year reached €702 million, compared with €912 million in the previous three-month period.
Due to the release of a tax risk provision relating to the acquisition of Cypress and interest income arising thereon of €32 million, the financial result increased from a net loss of €6 million in the fourth quarter of the 2023 fiscal year to a net gain of €25 million in the first quarter of the 2024 fiscal year.
The tax expense in the first quarter of the 2024 fiscal year amounted to €134 million, compared with €163 million in the prior quarter.
Profit from continuing operations in the first quarter of the current fiscal year added up to €598 million, compared with €748 million in the preceding quarter. The result from discontinued operations in the first quarter was a loss of €11 million3, compared with a profit of €5 million in the previous quarter. The profit for the period in the first quarter of the current fiscal year amounted to €587 million. In the fourth quarter of the 2023 fiscal year, the profit for the period was €753 million.
Earnings per share from continuing operations decreased in the first quarter of the 2024 fiscal year to €0.45, from €0.57 in the prior quarter (basic and diluted in each case). Adjusted earnings per share4 (diluted) stood at €0.53 at the end of the first quarter of the current fiscal year, compared with €0.65 one quarter earlier.
Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs –totaled €653 million in the first quarter of the current fiscal year, compared with €1,057 million in the prior quarter. Depreciation and amortization in the first quarter of the 2024 fiscal year amounted to €456 million, compared with €450 million in the fourth quarter of the 2023 fiscal year.
As expected, Free Cash Flow in the first quarter of the current fiscal year declined significantly to a negative figure of €1,597 million, compared with a positive figure of €614 million in the prior quarter. The figure for the first quarter includes purchase price payments of around €800 million relating to the acquisition of companies; mainly GaN Systems Inc. Other major factors contributing to the decrease in Free Cash Flow were the significant reduction in trade payables, annual bonus payments for the record 2023 fiscal year, as well as the continuing build-up of inventories, partly for strategic reasons.
The gross cash position at the end of the first quarter of the 2024 fiscal year was €2,712 million, compared with €3,590 million at the end of the 2023 fiscal year. Financial debt at 31 December 2023 stood at €5,398 million, compared with €4,733 million at the end of the fourth quarter of the 2023 fiscal year. The net cash position was therefore a negative amount of €2,686 million, compared with a negative amount of €1,143 million at the end of the previous quarter.
EVENTS RELATING TO QIMONDA On 8 January 2024, the court-appointed expert submitted his opinion on the value of the contributions in kind. The submission of the opinion represents an interim step in the pending legal dispute. Please refer to the Ad-hoc announcement published on 8 January 2024. In this context, we have adjusted the provisions relating to Qimonda from €212 million as of 30 September 2023 to €228 million as of 31 December 2023.
OUTLOOK FOR THE 2024 FISCAL YEAR Based on an assumed exchange rate of US$1.10 to the euro (previously US$1.05), revenue in the 2024 fiscal year is now expected to be around €16 billion (previously €17 billion) plus or minus €500 million. About half of the decline of the forecast revenue relates to the adjustment of the assumed exchange rate to US$1.10. Compared with revenue in the 2023 fiscal year the expected revenue at the midpoint of the guidance of €16 billion corresponds to a decline of about 2 percent.
Adjusting for currency effects, Infineon continues to expect revenue growth in the Automotive (ATV) segment in the low double-digit percentage range. The decline in revenue in the Green Industrial Power (GIP) segment in comparison with the prior year is expected to be in the mid to high-single-digit percentage range. The decrease in revenue in both the Power & Sensors Systems (PSS) and Connected Secure Systems (CSS) segments is forecast to be in the mid to high-teens percentage range. With expected revenue in the 2024 fiscal year of €16 billion, the adjusted gross margin should be in the low to mid-forties percentage range and the Segment Result Margin in the low to mid-twenties percentage range.
Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – are now planned at around €2.9 billion for the 2024 fiscal year compared with €3.3 billion in November 2023. The focus here will be on the completion of Phase 1 of the third manufacturing module at the Kulim site (Malaysia), which is designed to produce compound semiconductors, and the commencement of Phase 2. Furthermore, a large proportion of the funds will be invested in the construction of the fourth manufacturing module in Dresden (Germany), designed to produce analog/mixed-signal components and power semiconductors. Considerable funds are also being invested in the machinery to manufacture products based on silicon carbide and gallium nitride.
Depreciation and amortization are anticipated to be now around €1.9 billion in the 2024 fiscal year (previously €2.1 billion), of which approximately €400 million is attributable to amortization of purchase price allocations arising mainly from the acquisition of Cypress. Adjusted Free Cash Flow, which is being adjusted for investment in large frontend buildings and the purchase of GaN Systems, is now expected to be about €1.8 billion (previously 2.2 billion), which is about 11 percent of the forecast revenue for the year of €16 billion. Reported Free Cash Flow should be around €200 million (previously 400 million). Return on Capital Employed (RoCE) is now forecast to reach around 11 percent. Previously RoCE was expected to be around 13 percent.
OUTLOOK FOR THE SECOND QUARTER OF THE 2024 FISCAL YEAR Based on an assumed exchange rate of US$1.10 to the euro, Infineon expects to generate revenue of around €3.6 billion in the second quarter of the 2024 fiscal year. Revenue in the ATV, GIP and CSS segments should stay at about the same level as in the previous quarter. Revenue in the PSS segment is expected to decline noticeably. Based on this revenue forecast for the Group, the Segment Result Margin should be about 18 percent.
3 See paragraph entitled "Events relating to Qimonda" in this release.
4 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.
Infineon’s segments’ performance in the first quarter of the 2024 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 TELEPHONE PRESS CONFERENCE The Management Board of Infineon will host a telephone conference call including a webcast for analysts and investors (in English only) on 6 February 2024 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 of the 2024 fiscal year as well as the outlook for the second quarter and the 2024 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: https://www.infineon.com/cms/en/about-infineon/investor/reports-and-presentations/
INFINEON FINANCIAL CALENDAR (* preliminary)
ABOUT INFINEON Infineon Technologies AG is a global semiconductor leader in power systems and IoT. Infineon drives decarbonization and digitalization with its products and solutions. The Company had around 58,600 employees worldwide (end of September 2023) and generated revenue of about €16.3 billion in the 2023 fiscal year (ending 30 September). Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the OTCQX International over-the-counter market (ticker symbol: IFNNY).
Further information is available at https://www.infineon.com/
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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. All figures mentioned in this press release are preliminary and unaudited.
Contact: Andre Tauber, Media Relations, phone: +49 89 234 23888
06.02.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
| 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, XS2056730679, XS2056730323, XS2443921056, XS2194283672, XS2194283839, XS2194192527, US45662N1037 |
| WKN: | 623100, A2YN1J, A2YN1H, A3MQS8, A3E44V, A3E44W, A3E44X, 936207 |
| Indices: | DAX, TecDAX, EURO STOXX 50 |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; OTC QX, Luxembourg Stock Exchange |
| EQS News ID: | 1830579 |
| End of News | EQS News Service |
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1830579 06.02.2024 CET/CEST
Boersengefluester.de (BGFL) provides an overview of the key figures on sales, earnings, cash flow and dividends to help you better assess the fundamental development of the respective companies. All information is entered manually in our database - the source is the respective annual reports. All estimates for future figures are provided by BGFL.
| The most important financial data at a glance | ||||||||
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024e | ||
| Sales1 | 7.599,00 | 8.000,00 | 8.567,00 | 11.060,00 | 14.218,00 | 16.309,00 | 14.955,00 | |
| EBITDA1,2 | 2.330,00 | 2.360,00 | 1.841,00 | 2.983,00 | 4.509,00 | 5.773,00 | 4.055,00 | |
| EBITDA-Margin3 | 30,66 | 29,50 | 21,49 | 26,97 | 31,71 | 35,40 | 27,12 | |
| EBIT1,4 | 1.469,00 | 1.380,00 | 581,00 | 1.470,00 | 2.845,00 | 3.948,00 | 2.190,00 | |
| EBIT-Margin5 | 19,33 | 17,25 | 6,78 | 13,29 | 20,01 | 24,21 | 14,64 | |
| Net Profit (Loss)1 | 1.075,00 | 1.080,00 | 368,00 | 1.169,00 | 2.179,00 | 3.137,00 | 1.301,00 | |
| Net-Margin6 | 14,15 | 13,50 | 4,30 | 10,57 | 15,33 | 19,24 | 8,70 | |
| Cashflow1,7 | 1.575,00 | 1.605,00 | 1.811,00 | 3.065,00 | 3.980,00 | 3.960,00 | 2.780,00 | |
| Earnings per share8 | 0,95 | 0,75 | 0,26 | 0,87 | 1,65 | 2,38 | 0,98 | |
| Dividend per share8 | 0,27 | 0,27 | 0,22 | 0,27 | 0,32 | 0,35 | 0,35 | |
1 in Mio. Euro; 2 EBITDA = Earnings before interest, taxes, depreciation and amortisation; 3 EBITDA in relation to sales; 4 EBIT = Earnings before interest and taxes; 5 EBIT in relation to sales; 6 Net profit (-loss) in relation to sales; 7 Cashflow from operations; 8 in Euro; Source: boersengefluester.de
Auditor: Deloitte
All relevant valuation ratios, dates and other investor information on your share at a glance. Good to know: All data comes from boersengefluester.de and is updated daily. This means you are always up to date. You can get brief explanations of the key figures by moving the cursor or mouse over the relevant field.
| INVESTOR-INFORMATION | ||||||
| ©boersengefluester.de | ||||||
| Infineon | ||||||
| WKN | ISIN | Legal Type | Marketcap | IPO | Recommendation | Plus Code |
| 623100 | DE0006231004 | AG | 40.992,86 Mio € | 13.03.2000 | 8FWH3JH7+XG | |
| PE 2025e | PE 10Y-Ø | BGFL-Ratio | Shiller-PE | PB | PCF | KUV |
| 37,82 | 26,57 | 1,42 | 34,12 | 2,63 | 14,75 | 2,74 |
|
Dividend '2022 in € |
Dividend '2023 in € |
Dividend '2024e in € |
Div.-Yield '2024e in % |
| 0,32 | 0,35 | 0,35 | 1,12% |
| Annual General Meeting | Q1-figures | Q2-figures | Q3-figures | Annual press conference |
| 20.02.2025 | 04.02.2025 | 08.05.2025 | 05.08.2025 | 13.11.2025 |
| Distance 60-days-line | Distance 200-days-line | Performance YtD | Performance 52 weeks | IPO |
| +2,22% | -3,22% | -16,96% | -16,56% | -10,31% |
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