German chipmaker Infineon increases turnover and confirms outlook for 2019

Turnover of Infineon amounted to 2 billion euros (2.2 billion U.S. dollars) in third quarter of the 2019 fiscal year, marking an increase of 2 percent compared to the previous quarter, the German chipmaker and semiconductor manufacturer announced on Thursday.

All business segments of Infineon had contributed to the company’s “slightly higher” turnover figures, according to the German chipmaker.

“Infineon remains on course. Although the global economy remains sluggish, Group revenue again grew in the third quarter,” stated Reinhard Ploss, chief executive officer (CEO) of Infineon.

In Q3 of fiscal year 2019, which ran from April to June, profits of Infineon declined by 5 percent to 317 million euros, resulting in a profit margin of 15.7 percent.

The slightly stronger U.S. dollar in the third quarter compared to the second quarter of 2019 had a “positive impact” on Infineon’s Q3 business, the company stated.

“Demand was solid overall, despite the lack of significant growth momentum,” emphasized Infineon CEO Ploss.

Despite “ongoing unfavorable macroeconomic conditions,” Infineon confirmed its business outlook for the current fiscal year.

The German chipmaker confirmed that it was expecting turnover to increase by around 5 percent to 8 billion euros in fiscal year 2019 while the company’s profit margin is anticipated to stand at 16 percent.

Back in June, Infineon signed a contract for the acquisition of U.S. company Cypress, a manufacturer of semiconductors.

The takeover would have a cash price of 23.85 U.S. dollars per share, corresponding to a total price of 9 billion euros, according to Infineon.

“With Cypress, Infineon will be able to gain an even stronger foothold in important future markets and accelerate the pace of growth,” noted Infineon CEO Ploss.

The acquisition of Cypress was still subject to approval by the shareholders of Cypress as well as the responsible jurisdictions. The transaction is expected to be concluded at the end of 2019 or early in 2020.