Infineon Technologies AG
Infineon Technologies AG: FOLLOWING A SUCCESSFUL 2018 FISCAL YEAR INFINEON CONFIRMS ITS TARGETS FOR REVENUE, SEGMENT RESULT AND INVESTMENTS THAT WERE RAISED IN JUNE. FURTHER DIVIDEND INCREASE PLANNED
DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results/Forecast
– Q4 FY 2018: REVENUE EUR 2,047 MILLION, PLUS 5 PERCENT QUARTER-ON-QUARTER; SEGMENT RESULT EUR 400 MILLION; SEGMENT RESULT MARGIN 19.5 PERCENT – FY 2018: REVENUE EUR 7,599 MILLION, PLUS 8 PERCENT YEAR-ON-YEAR, SEGMENT RESULT EUR 1,353 MILLION, SEGMENT RESULT MARGIN 17.8 PERCENT – OUTLOOK FOR FY 2019: BASED ON AN ASSUMED EXCHANGE RATE OF US$ 1.15 TO THE EURO, YEAR-ON-YEAR REVENUE GROWTH OF 11 PERCENT (PLUS OR MINUS 2 PERCENTAGE POINTS) AND SEGMENT RESULT MARGIN OF 18 PERCENT AT MID-POINT OF REVENUE GUIDANCE – OUTLOOK FOR Q1 FY 2019: BASED ON AN ASSUMED EXCHANGE RATE OF US$ 1.15 TO THE EURO, QUARTER-ON-QUARTER REVENUE DECREASE OF 4 PERCENT (PLUS OR MINUS 2 PERCENTAGE POINTS) DUE TO SEASONAL FACTORS AND SEGMENT RESULT MARGIN OF 17.5 PERCENT AT MID-POINT OF REVENUE GUIDANCE – PROPOSAL TO INCREASE DIVIDEND TO 27 CENTS PER SHARE
“The fourth quarter was a strong finish to an outstanding fiscal year. For the first time, our current business segments have generated over 2 billion euros of revenue in one single quarter,” stated Dr. Reinhard Ploss, CEO of Infineon. “The digitalization and electrification of many aspects in our daily life are resulting in sustained high demand for our products and solutions. We begin the 2019 fiscal year with well-filled order books and aim to continue growing faster than the market as a whole. We are keeping a vigilant eye on political and economic developments and will react appropriately if and when the need arises.”
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. GROUP PERFORMANCE IN FOURTH QUARTER OF 2018 FISCAL YEAR In the fourth quarter, the gross margin came in at 39.8 percent, compared to 38.2 percent in the preceding three-month period. Included therein are acquisition-related depreciation and amortization as well as other expenses totaling EUR 17 million, mainly relating to the acquisition of International Rectifier. The adjusted gross margin improved from 39.2 percent to 40.6 percent quarter-on-quarter. The Segment Result for the three-month period amounted to EUR 400 million, compared to EUR 356 million one quarter earlier. The Segment Result Margin improved from 18.3 percent to 19.5 percent quarter-on-quarter. The non-segment result in the fourth quarter was a net loss of EUR 30 million, compared with a net loss of EUR 37 million in the previous quarter. The fourth quarter non-segment result comprises EUR 18 million of cost of goods sold, EUR 14 million of selling, general and administrative expenses and EUR 2 million of research and development expenses, which were partly offset by a net positive contribution of EUR 4 million from other operating income and expenses. Operating income improved from EUR 319 million to EUR 370 million quarter-on-quarter. Fourth-quarter income tax expense totaled EUR 54 million, up from EUR 49 million in the third quarter. Income from continuing operations increased to EUR 300 million, compared with EUR 254 million for the preceding three-month period. The result from discontinued operations moved from a positive amount of EUR 17 million to a negative EUR 159 million, whereby the fourth-quarter figure includes the impact of increasing provisions relating to the lawsuit brought by the Qimonda insolvency administrator for the alleged activation of a shell company and liability for the impairment of capital. The adjustment to provisions was based on an interim report submitted in September by the court-appointed expert on his preliminary assessment of the value of Infineon’s contributions-in-kind to Qimonda. The loss from discontinued operations caused net income to decrease from EUR 271 million to EUR 141 million quarter-on-quarter. Fourth-quarter earnings per share from continuing operations (basic and diluted) amounted to EUR 0.27, up from EUR 0.22 in the previous quarter. Adjusted earnings per share[2] (diluted) amounted to EUR 0.28, compared to EUR 0.24 in the third quarter, mainly due to the improved Segment Result. Investments – which Infineon defines as the sum of purchases of property, plant and equipment, purchases of intangible assets and capitalized development assets – amounted to EUR 417 million in the fourth quarter of the 2018 fiscal year, compared to EUR280 million in the preceding three-month period. Depreciation and amortization increased from EUR 219 million to EUR 226 million quarter-on-quarter. Free cash flow from continuing operations improved to EUR 227 million. In the third quarter of the 2018 fiscal year, free cash flow had totaled EUR 192 million. Net cash provided by operating activities from continuing operations increased from EUR 462 million to EUR 641 million quarter-on-quarter. The gross cash position fell from EUR 2,621 million to EUR 2,543 million in the course of the fourth quarter. The net cash position improved from EUR 792 million to EUR 1,011 million during the same period. PROPOSED DIVIDEND FOR 2018 FISCAL YEAR: EUR 0.27 PER SHARE OUTLOOK FOR FIRST QUARTER OF 2019 FISCAL YEAR OUTLOOK FOR THE 2019 FISCAL YEAR Investments in property, plant and equipment, intangible assets and capitalized development costs totaling approximately EUR 1.6 to 1.7 billion are planned for the 2019 fiscal year. In addition to investments that correlate directly with revenue growth, this figure also covers previously announced investments in buildings, including the construction of a cleanroom for the new 300-millimeter manufacturing facility in Villach amounting to around EUR 200 million. Furthermore the projected investment outlay comprises around EUR 100 million for potential revenue upsides and structural changes, for which overall a low triple-digit million sum has already been announced in June. Depreciation and amortization are expected to be in the region of EUR 1 billion, whereby about EUR 90 million of that amount are related to amortization resulting from purchase price allocation mainly of International Rectifier. Infineon’s segments’ performance in the fourth quarter of the 2018 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 CONFERENCE
– 14 – 15 Nov 2018 Morgan Stanley TMT Conference, Barcelona – 27 – 28 Nov 2018 Credit Suisse TMT Conference, Scottsdale, Arizona – 28 Nov 2018 Equita European Conference, Milan – 28 Nov 2018 UBS German Senior Investor Day, Munich – 10 – 11 Dec 2018 Power Presentation (IPC + PMM) by Division Presidents Peter Wawer and Andreas Urschitz – 5 Feb 2019* Earnings Release for the First Quarter of the 2019 – 21 Feb 2019 Annual General Meeting, Munich – 7 May 2019* Earnings Release for the Second Quarter of the 2019 – 1 Aug 2019* Earnings Release for the Third Quarter of the 2019 – 12 Nov 2019* Earnings Release for the Fourth Quarter and the 2019 ABOUT INFINEON Further information is available at www.infineon.com
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. Contact: Bernd Hops, Media Relations, phone: +49 89 234-24123, fax: +49 89 234-154123
12.11.2018 Dissemination of a Corporate News, transmitted by DGAP – 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 |
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 |