MUNICH (Dow Jones) – After the semiconductor manufacturer Infineon has continued the upturn in the third quarter of 2009/10 ( September 30) , the company has raised its annual forecast for the third time . The DAX Group now anticipates sales growth compared to 2009 from the mid to high 40 percent range , such as Infineon Technologies AG announced on Wednesday. (Photo : Infineon)
This Infineon would have a turnover of more than EUR 4.2 billion . So far, sales growth was in the high 30 percent range have been promised.
The Drittquartalszahlen , Infineon beat analysts’ expectations , sending their shares accordingly to ride. Against 13.37 shares were the clock with an increase of 1.9% in the second largest winner in a light 0.5 % DAX.
The re- forecast increase is not due only to the good performance , but also in large part to the strong U.S. dollar. The stronger dollar has helped , according to Infineon in the third quarter of about 5 percentage points to sales growth of 17% over the previous quarter. Then on Wednesday , the Group increased its sales forecast by about 50-10 percentage points.
Yet the middle of the quarter, CEO Peter Bauer was completed ausgegegangen expect that there would be no third forecast increase, because the full year at that time had a very clear view . "We have it but not taken into account in the dollar , which has nevertheless contributed significantly to the topline , "he said during a conference call with journalists .
Also , the unexpectedly strong growth in the business of mobile chips have made an increase in the forecast need . "Especially in the wireless business, we have grown phenomenally with 30 % , which we have not foreseen , "said Bauer. He had been previously declared in an analyst conference that Infineon currently in the delivery of SIM cards, the demand may still hardly use .
Infineon is now in the new forecast on a different exchange rate than was the case Zweitquartalszahlen . It is expected that an exchange rate of the dollar to € 1.30 , Infineon had previously paid a rate of 1.40 basis . Commerzbank analyst Thomas Becker estimates that six to seven percentage points of the increase in the sales forecast the growth of the business are due , the rest was the stronger dollar as the basis of the new forecast, due to .
Infineon was able to take significantly more orders during the quarter in his books were processed as. The ratio of orders to sales ( book-to -bill was ) in the third quarter at 1.25 , such as farmer said during an analyst conference.
With the increase in the forecast for the year according to Infineon is also looking optimistically to the final quarter. The segment profit margin should be increased by a further 1-2 percentage points and thus be between 14.5% and 15.5 %. Segmentergebis a margin of 15 % farmers had set his company already the medium-term goal. The sales are expected to be in the final quarter again increased by a high single digit percentages for the previous quarter.
In the third quarter , sales of the Group’s DAX climbed 17 % to EUR 1.209 billion from 1.035 billion in the previous quarter . The increase was driven by a growth in all four segments. Also able to increase earnings and profitability of the Group of Neubiberg near Munich in the period April to June . Net income rose to 126 million of 79 million EUR in the first quarter . analysts polled by Dow Jones Newswires had expected net profit EUR 104 million on revenue of 1.125 billion EUR . The segment’s operating profit margin reached 13.5% after 10.6 % in the second quarter. Infineon had 12.6% to 14.6 % set as a goal.
Likewise, the objective for the segment profit margin increased Infineon on Wednesday. The operating margin should be in the current fiscal year now in the low 10 percent range , and has now had been seen in more than 10 %.
In the mobile phone chips , Infineon , with 346 million EUR retract 30 % more sales than in the previous quarter, the segment result rose to 24 (previous quarter : 9 ) million EUR. This was the mobile phone chip division for the second largest industrial business in the past quarter revenue bringers . Chief Technology Officer Hermann Eul has the impression that Infineon is gaining market share in the mobile segment . Of the mobile phone chip is also expected in the fourth quarter, the largest contribution to sales growth.
The business of mobile phone chips , analysts say , however, remains in spite of sales jump a building site. The market observers described the LBBW margin of 6.9 % compared with 7.5% the previous year as " disappointing ". Analyst Becker of Commerzbank agrees with this assessment and thus sees the time has come to sell the division.
Infineon is also currently exploring the possibility of a sale of the division. For those interested have already set up a data room , as a possible buyer is the U.S. firm Intel traded. "We remain satisfied with Wireless and express ourselves as in the past not to rumors , "said Peter Bauer to an analyst question on the future strategy for the division.
The industrial business increased in revenues in the third quarter by 18 % to EUR 373 million and segment earnings were ahead by 39 % to 82 million EUR. With the automotive industry Infineon was 5% more sales and drove a 333 million EUR. The segment profit rose slightly, by 2 % to 52 million EUR. The automotive industry , Infineon had already make a "great efforts "to supply the customers enough to .
Chip Card & Security, the umsatzschwächste of the four segments , put in revenues by 11 % to EUR 110 million and doubled the segment earnings in the quarter compared to 6 million EUR.
After the production of Neubiberg was now at full capacity for several quarters , to the investments for the current fiscal year will be increased . More than EUR 400 million instead of the previously estimated over 300 million EUR are invested in production equipment and intangible assets. Last year, the semiconductor manufacturer was still limited to 154 million EUR. "The construction of new capacity but progress more slowly than desired , "said Chief Technology Officer Eul .
Infineon possess, at the end of the quarter ‘s net cash position by 1.1 billion EUR, about 100 million EUR more than in the previous quarter. Whether this money will be used for acquisitions has not yet been decided , according to CFO Schroeter . To pay a dividend Infineon sees more " technically capable ", but also it would be until the end decided yet . It had been made in Neubiberg no idea as to whether a portion of the money shares will be repurchased , said chief financial officer, after the presentation of the Supervisory Board must now deliver its responsibility for the strategy department at Bauer. Bauer is then planned that the Speaker as Chairman of the Board.
– By Matthias Karpstein , Dow Jones Newswires
+49 89 55214030, matthias.karpstein @ dowjones.com
( Archibald Preuschat in Dusseldorf, has contributed to this article).
DJG / mak / kla / sh