EQS-News: Infineon Technologies AG: Slight increase in revenue and earnings in Q3 FY 2024. Further improvement expected in Q4 FY 2024. Full-year forecast well within the previously guided range
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EQS-News: Infineon Technologies AG
/ Key word(s): Quarter Results/Forecast
Neubiberg, 5 August 2024 – Today, Infineon Technologies AG is reporting results for the third quarter of its 2024 fiscal year (period ended 30 June 2024).
"In a market environment that remains challenging, Infineon continues to hold up well," says Jochen Hanebeck, CEO of Infineon. "The recovery in our target markets is progressing only slowly. Prolonged weak economic momentum has resulted in inventory levels in many areas overlaying end demand. In addition to managing the current demand cycle, we are working on further strengthening our competitiveness through the "Step Up" structural improvement program."
GROUP PERFORMANCE IN THE THIRD QUARTER OF THE 2024 FISCAL YEAR In the third quarter of the 2024 fiscal year, Infineon’s Group revenue improved slightly to €3,702 million, up 2 percent from the revenue generated in the prior quarter of €3,632 million. The main contributors to this increase in revenue were the Automotive (ATV) and Power & Sensor Systems (PSS) segments. Revenue in the Green Industrial Power (GIP) and Connected Secure Systems (CSS) segments was virtually unchanged from the previous quarter.
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.
The gross margin in the third quarter of the current fiscal year rose to 40.2 percent, compared with 38.6 percent in the prior quarter. The adjusted gross margin increased to 42.2 percent, compared with 41.1 percent in the second quarter.
The Segment Result improved in the third quarter of the 2024 fiscal year to €734 million, from €707 million in the prior quarter. The Segment Result Margin rose to 19.8 percent, from 19.5 percent in the second quarter.
The Non-Segment Result for the third quarter of the 2024 fiscal year was a net loss of €215 million, compared with a net loss of €211 million in the prior quarter. The third-quarter Non-Segment Result comprised €71 million relating to cost of goods sold, €15 million relating to research and development expenses and €54 million relating to selling, general and administrative expenses. In addition, it included net other operating expenses of €75 million. A significant component of this figure corresponded to write-downs of plant and machinery at the Regensburg site that can now only be used to a limited extent or not at all in connection with the "Step Up" structural improvement program.
In the third quarter of the 2024 fiscal year, operating profit improved to €519 million, up from €496 million in the prior quarter.
The financial result in the third quarter of the current fiscal year was a net loss of €30 million, compared with a net loss of €12 million in the preceding quarter.
The tax expense in the third quarter of the current fiscal year was €88 million, compared with €93 million in the prior quarter.
Profit from continuing operations in the third quarter of the 2024 fiscal year increased to €404 million, compared with €394 million in the prior quarter. The result from discontinued operations was a loss of €1 million, after €0 million in the preceding quarter. The profit for the period improved in the third quarter of the current fiscal year to €403 million, up from the €394 million achieved in the second quarter of the 2024 fiscal year.
Earnings per share from continuing operations (basic) improved slightly in the third quarter of the 2024 fiscal year to €0.31, from €0.30 in the previous quarter. Diluted earnings per share from continuing operations remained unchanged from the prior quarter at €0.30. Adjusted earnings per share3 (diluted) rose slightly in the third quarter of the current fiscal year to €0.43, compared with €0.42 in the prior quarter.
Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – increased in the third quarter of the current fiscal year to €700 million, up from €643 million in the prior quarter. Depreciation and amortization in the third quarter of the 2024 fiscal year amounted to €470 million, compared with €467 million in the preceding quarter.
Free Cash Flow improved in the third quarter of the current fiscal year to €393 million from €82 million in the prior quarter.
The gross cash position at the end of the third quarter of the current fiscal year was €2,345 million, compared with €2,583 million at the end of the prior quarter. Financial debt decreased from €5,941 million at 31 March 2024 to €5,386 million at 30 June 2024. Capital market liabilities of US$ 350 million were repaid in the third quarter. The net cash position improved by €317 million from net financial debt of €3,358 million at the end of the second quarter to net financial debt of €3,041 million at the end of the third quarter of the 2024 fiscal year.
SEGMENT EARNINGS FOR THE THIRD QUARTER OF THE 2024 FISCAL YEAR Revenue in the Automotive segment rose in the third quarter of the 2024 fiscal year to €2,112 million, up from €2,078 million in the prior quarter. The 2 percent increase was the result of stronger demand in the area of software-defined vehicles including E/E architecture, benefitting in particular microcontrollers. The Segment Result improved to €537 million from €512 million in the second quarter of the current fiscal year. The Segment Result Margin rose to 25.4 percent, up from 24.6 percent in the prior quarter.
In the third quarter of the 2024 fiscal year, revenue in the Green Industrial Power segment remained virtually unchanged from the prior quarter at €475 million, compared with €469 million in the second quarter of the fiscal year. Demand in the areas of electric buses and trucks, trains as well as home appliances increased slightly, while demand was somewhat lower in automation and industrial drives as well as air conditioning systems. The Segment Result achieved in the third quarter of the current fiscal year was €88 million, compared with €89 million in the second quarter of the 2024 fiscal year. The Segment Result Margin was 18.5 percent, compared with 19.0 percent in the prior quarter.
Revenue in the Power & Sensor Systems segment rose in the third quarter of the 2024 fiscal year by 5 percent to €749 million, up from €713 million in the prior quarter. The reason for the increase in revenue was rising demand for components in the area of servers and data centers as well as USB controllers and silicon microphones. The Segment Result increased in the third quarter of the current fiscal year to €70 million, up from €64 million in the prior quarter. The Segment Result Margin improved slightly to 9.3 percent, from 9.0 percent in the second quarter.
Revenue in the Connected Secure Systems segment remained virtually unchanged in the third quarter of the 2024 fiscal year at €366 million, compared with €371 million in the prior quarter. Demand in the area of Wi-Fi was slightly weaker, while it remained more or less unchanged in other applications compared with the previous quarter. At €42 million, the Segment Result remained unchanged. The Segment Result Margin improved slightly to 11.5 percent, up from 11.3 percent in the second quarter of the current fiscal year.
OUTLOOK FOR THE FOURTH QUARTER OF THE 2024 FISCAL YEAR Assuming an exchange rate of US$1.10 to the euro, Infineon expects to generate revenue of around €4.0 billion in the fourth quarter of the 2024 fiscal year. It is anticipated that revenue will increase in all four segments compared with the preceding quarter. In the Power & Sensor Systems and Connected Secure Systems segments, the growth rate is expected to significantly exceed the forecast growth rate for the Group. In the Automotive and Green Industrial Power segments, the growth rate is expected to be lower than the average rate for the Group. It is expected that the Segment Result Margin will be around 20 percent.
OUTLOOK FOR THE 2024 FISCAL YEAR Based on the results for the first three quarters and the outlook for the fourth quarter, Infineon expects to generate revenue of around €15.0 billion in the 2024 fiscal year. In the Automotive segment, revenue growth for the year is expected to be about 3 percent. The decrease in revenue in the Green Industrial Power segment is expected to be a low-teens percentage figure. The decline in revenue in the Power & Sensor Systems segment compared with the prior fiscal year is forecast to be in the high-teens and in the Connected Secure Systems segment in the mid-twenties percentage range.
With expected Group revenue in the 2024 fiscal year of €15.0 billion, the adjusted gross margin is still forecast to be in the low-forties percentage range and the Segment Result Margin to be around 20 percent.
Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – are expected to reach around €2.8 billion in the 2024 fiscal year. The focus here is on investment in manufacturing modules for compound semiconductors on the Kulim site (Malaysia) and for analog/mixed-signal components in Dresden (Germany).
Depreciation and amortization are anticipated to be around €1.9 billion in the 2024 fiscal year, of which around €400 million is attributable to amortization of purchase price allocations arising mainly from the acquisition of Cypress. Adjusted Free Cash Flow, which is adjusted for investment in large frontend buildings and the purchase of GaN Systems, is expected to be about €1.5 billion, which is about 10 percent of the forecast revenue for the year. Reported Free Cash Flow should be around minus €200 million. Without the purchase price payment for the acquisition of GaN Systems reported Free Cash Flow would probably reach around plus €600 million. Return on Capital Employed (RoCE) is forecast to be around 9 percent.
3 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 third 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.
TELEPHONE PRESS CONFERENCE AND ANALYST TELEPHONE CONFERENCE On 5 August 2024 the Management Board of Infineon will host a telephone press conference with the media at 8:00 am (CEST), 2:00 am (EDT). It can be followed over the Internet in both English and German. In addition a telephone conference call including a webcast for analysts and investors (in English only) will take place at 9:30 am (CEST), 3:30 am (EDT). During both calls, the Infineon Management Board will present the Company’s results for the third quarter of the 2024 fiscal year as well as the outlook for the fourth quarter and the 2024 fiscal year. The conferences will also be available live and for download on Infineon’s website at www.infineon.com/investor
The Q3 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/ Follow us: X - Facebook - LinkedIn
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
05.08.2024 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, XS2767979052, XS2194283839, XS2194192527, US45662N1037 |
| WKN: | 623100, A2YN1J, A2YN1H, A3MQS8, A3E44V, A35129, 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: | 1960333 |
| End of News | EQS News Service |
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1960333 05.08.2024 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
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| 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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