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INFINEON TECHNOLOGIES AG NAMENS-AKTIEN O.N.

14.11.2017 - 07:30

DGAP-News: Infineon Technologies AG: REVENUE AND EARNINGS IN LINE WITH INCREASED OUTLOOK FOR FISCAL YEAR. ANOTHER DIVIDEND HIKE PLANNED. CONTINUING STRONG GROWTH IN FY 2018 EXPECTED: ACCELERATING GROWTH MOMENTUM DAMPENED BY WEAKER DOLLAR



DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results/Final Results


Infineon Technologies AG: REVENUE AND EARNINGS IN LINE WITH INCREASED OUTLOOK FOR FISCAL YEAR. ANOTHER DIVIDEND HIKE PLANNED. CONTINUING STRONG GROWTH IN FY 2018 EXPECTED: ACCELERATING GROWTH MOMENTUM DAMPENED BY WEAKER DOLLAR


14.11.2017 / 07:30



The issuer is solely responsible for the content of this announcement.



 



- Q4 FY 2017: REVENUE OF EUR1,820 MILLION; SEGMENT RESULT EUR328 MILLION; SEGMENT RESULT MARGIN 18.0 PERCENT; EARNINGS PER SHARE EUR0.16 (BASIC AND DILUTED); ADJUSTED EARNINGS PER SHARE EUR0.22 (DILUTED); GROSS MARGIN 37.5 PERCENT, ADJUSTED GROSS MARGIN 38.6 PERCENT



- LOWER REVENUE IN Q4 COMPARED TO Q3 FY 2017 AS CONSEQUENCE OF SIGNIFICANTLY WEAKER US DOLLAR



- OUTLOOK FOR Q1 FY 2018: QUARTER-ON-QUARTER REVENUE DECREASE OF 2 PERCENT (PLUS OR MINUS 2 PERCENTAGE POINTS) DUE TO SEASONALITY, AND SEGMENT RESULT MARGIN OF 15 PERCENT AT MID-POINT OF REVENUE GUIDANCE



- OUTLOOK FOR FY 2018: BASED ON AN ASSUMED EXCHANGE RATE OF US$ 1.15 TO THE EURO (COMPARED TO AN AVERAGE EUR/USD EXCHANGE RATE OF US$ 1.11 IN FY 2017), YEAR-ON-YEAR REVENUE GROWTH OF ABOUT 9 PERCENT (PLUS OR MINUS 2 PERCENTAGE POINTS) AND SEGMENT RESULT MARGIN OF 17 PERCENT AT MID-POINT OF REVENUE GUIDANCE



Neubiberg, Germany, 14 November 2017 - Infineon Technologies AG today reported preliminary results for the fourth quarter and the 2017 fiscal year, both ended 30 September 2017.



"Infineon continues to grow. We raised the outlook for the full fiscal year in March 2017 and achieved the higher targets, despite stronger headwinds caused by the weaker US dollar," stated Dr. Reinhard Ploss, CEO of Infineon. "Our growth is very broadly based. Alongside electro-mobility, driver assistance systems and renewable energy, a further pillar of growth is our industrial business - including drives for increasingly automated production machinery and robotics. Demand is also strong for our highly efficient chips, by example for fast chargers for tablets. With future technologies such as silicon carbide and gallium nitride, we are paving the way for tomorrow's success. Adjusted for exchange rate effects, our growth rate in the 2018 fiscal year could even reach the double-digit mark."



























































































Euro in millions Q4 FY17 Q3 FY17 +/- in %
       
Revenue 1,820 1,831 (1)
Segment Result 328 338 (3)
Segment Result Margin 18.0% 18.5%  
Income (loss) from continuing operations 177 250 (29)
Income (loss) from discontinued operations, net of income taxes (1) 3 ---
Net income 176 253 (30)
       
in Euro      
Basic earnings (loss) per share from continuing operations1 0.16 0.22 (27)
Basic earnings (loss) per share from discontinued operations1 - - -
Basic earnings per share1 0.16 0.22 (27)
       
Diluted earnings (loss) per share from continuing operations1 0.16 0.22 (27)
Diluted earnings (loss) per share from discontinued operations1 - - -
Diluted earnings per share1 0.16 0.22 (27)
       
Adjusted earnings per share diluted2 0.22 0.24 (8)
       
Gross margin 37.5% 38.2%  
Adjusted gross margin2 38.6% 39.4%  

 

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.



REVIEW OF GROUP FINANCIALS FOR THE FOURTH QUARTER OF 2017 FISCAL YEAR

Compared to the preceding quarter, fourth-quarter revenue fell by 1 percent to EUR1,820 million. Revenue in the third quarter had amounted to EUR1,831 million. This seasonally atypical decrease was attributable to the significantly weaker US dollar in the period from July to September 2017. Demand remained vibrant for products used in the automotive and industrial sectors as well as for power supplies and power semiconductors in general. Revenue grew slightly for the Industrial Power Control (IPC) and Power Management & Multimarket (PMM) segments despite the weaker US dollar, but declined slightly for the Automotive (ATV) and Chip Card & Security (CCS) segments.



The gross margin in the fourth quarter was 37.5 percent, compared to 38.2 percent in the preceding three-month period. These figures include acquisition-related depreciation and amortization as well as other expenses attributable to the International Rectifier acquisition totaling EUR19 million. The adjusted gross margin came in at 38.6 percent, compared to 39.4 percent one quarter earlier.



Fourth-quarter Segment Result amounted to EUR328 million, compared to the previous quarter's EUR338 million. The Segment Result Margin declined from 18.5 percent to 18.0 percent.

The non-segment result in the final quarter of the 2017 fiscal year corresponded to a net loss of EUR56 million, compared to one of EUR40 million in the previous three-month period. Of the fourth-quarter figure, EUR20 million related to the cost of goods sold, EUR17 million to selling, general and administrative expenses and EUR1 million to research and development expenses. In addition, other operating income and other operating expenses were minus EUR18 million, including a loss of EUR13 million arising from the deconsolidation of Infineon's manufacturing entity in Newport (Wales, United Kingdom). The loss arose primarily as a result of cumulative foreign currency translation differences caused by the drop in the value of the British pound in the wake of the Brexit announcement.



The non-segment result for the fourth quarter includes EUR33 million of depreciation and amortization arising in conjunction with the purchase price allocation and other expenses for post-merger integration measures relating to the acquisition of International Rectifier.



Operating income for the fourth quarter of the 2017 fiscal year amounted to EUR272 million, compared to EUR298 million in the preceding quarter. Income from continuing operations totaled EUR177 million, down from corresponding third-quarter figure of EUR250 million. Loss from discontinued operations was EUR1 million, compared to an income of EUR3 million in the preceding quarter. Net income decreased from EUR253 million to EUR176 million quarter-on-quarter, with the expense for income taxes increasing from EUR37 million to EUR84 million. The figure for the fourth quarter of the 2017 fiscal year includes a deferred tax expense of EUR52 million, resulting from the utilization and revaluation of tax loss-carry-forwards and tax credits.



Earnings per share for the fourth quarter fell to EUR0.16, down from EUR0.22 in the preceding quarter (basic and diluted). Adjusted earnings per share3 (diluted) amounted to EUR0.22, compared to EUR0.24 one quarter earlier. For the purpose of calculating adjusted earnings per share (diluted), a number of items are eliminated, most notably acquisition-related depreciation/amortization and other expenses (net of tax) as well as valuation allowances on deferred tax assets.



Investments - which Infineon defines as the sum of purchases of property, plant and equipment, purchases of intangible assets and capitalized development costs - totaled EUR370 million in the fourth quarter, well up on the preceding quarter's figure of EUR231 million. Depreciation and amortization increased slightly from EUR202 million to EUR205 million.



Free cash flow from continuing operations totaled EUR249 million in the fourth quarter, down from EUR301 million in the preceding three-month period. Net cash provided by operating activities from continuing operations improved from EUR531 million to EUR616 million.



The gross cash position stood at EUR2,452 million at 30 September 2017, up on the figure of EUR2,217 million reported at 30 June 2017. The net cash position improved over the same period from EUR358 million to EUR618 million.



Provisions relating to Qimonda increased from EUR24 million to EUR33 million during the three-month reporting period. These provisions are recognized for legal costs in conjunction with the defense against claims made by the Qimonda insolvency administrator and for residual liabilities relating to Qimonda Dresden GmbH & Co. OHG.



PROPOSED DIVIDEND FOR 2017 FISCAL YEAR: EUR0.25 PER SHARE

In recent years, Infineon has increased the dividend several times, from EUR0.10 for the 2010 fiscal year to EUR0.22 per share for the 2016 fiscal year. In light of favorable business developments in the last financial year and the positive outlook for the 2018 fiscal year, a proposal shall be made to shareholders at the Annual General Meeting 2018 to increase the dividend for the 2017 fiscal year by a further 3 cents to EUR0.25 per share. Infineon's dividend policy is to allow shareholders to participate appropriately in growing earnings and, in times of flat or declining earnings, to at least keep the dividend at a constant level.



OUTLOOK FOR FIRST QUARTER OF 2018 FISCAL YEAR

In the first three months of the 2018 fiscal year, Infineon expects a seasonally typical quarter-on-quarter revenue decrease of 2 percent, plus or minus 2 percentage points. The forecast is based on an assumed exchange rate of US$ 1.15 to the euro. At the mid-point of revenue guidance, the Segment Result Margin is expected to come in at 15 percent.



OUTLOOK FOR 2018 FISCAL YEAR

For the 2018 fiscal year, based on an assumed exchange rate of US dollar 1.15 to the euro, Infineon expects year-on-year revenue growth of about 9 percent, plus or minus 2 percentage points. The average EUR/USD exchange rate during the 2017 fiscal year was 1.11 and thus more favorable for Infineon's revenue and earnings performance than the exchange rate of 1.15 now assumed for the coming fiscal year. If the exchange rate were to remain unchanged, the pace of growth compared to the 2017 fiscal year would be even higher. The Segment Result Margin is expected to come in at about 17 percent at the mid-point of revenue guidance. The ATV segment is predicted to grow at a meaningfully faster rate than the Group average. The IPC and PMM segments are both likely to report growth rates below the Group average. Due to the difficult market situation, revenue for the CCS segment is expected to remain broadly unchanged compared to the last fiscal year.



Investments in property, plant and equipment, intangible assets and capitalized development costs totaling between EUR1.1 and EUR1.2 billion are planned for the 2018 fiscal year. The ratio of investments to revenue at the mid-point of revenue guidance for the 2018 fiscal year should therefore be about 15 percent and hence above the target level of 13 percent of revenue. This development reflects high investments in additional manufacturing capacities, especially for electro-mobility products, which, along with other lines of business, are expected to see rising demand.



Depreciation and amortization is expected to be in the region of EUR880 million.



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 fourth quarter of the 2017 fiscal year can be found in the quarterly information at www.infineon.com.



All figures in this quarterly information are preliminary and unaudited.



ANALYST AND PRESS TELEPHONE CONFERENCE

Infineon will host a telephone conference call for analysts and investors (in English only) on 14 November 2017 at 9:30 am (CET), 3:30 am (EST). During the call, the Infineon Management Board will present the Company's results for the fourth quarter of the 2017 fiscal year. In addition, the Management Board will host a live 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 Q4 Investor Presentation is available (in English only) at: http://www.infineon.com/cms/en/corporate/investor/reporting/



INFINEON FINANCIAL CALENDAR (* preliminary)



- 15 - 16 Nov 2017 Morgan Stanley TMT Conference, Barcelona



- 28 - 29 Nov 2017 Credit Suisse TMT Conference, Scottsdale, Arizona



- 9 - 10 Jan 2018 Commerzbank German Investment Seminar, New York



- 31 Jan 2018* Earnings Release for the First Quarter of the 2018 Fiscal Year



- 22 Feb 2018 Annual General Meeting 2018, Munich



- 26 - 28 Feb 2018 Mobile World Congress, Barcelona



- 3 May 2018* Earnings Release for the Second Quarter of the 2018 Fiscal Year



- 12 June 2018 Capital Markets Day "IFX Day 2018", London



- Aug 1, 2018* Earnings Release for the Third Quarter of the 2018 Fiscal Year



- Nov 12, 2018* Earnings Release for the Fourth Quarter and the 2018 Fiscal Year



ABOUT INFINEON

Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon is the key to a better future. In the 2017 fiscal year (ending 30 September), the Company reported sales of around EUR7.1 billion with about 37,500 employees worldwide. Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY).



Further information is available at www.infineon.com

This press release is available online at www.infineon.com/press



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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:

Bernd Hops, Media Relations, phone: +49 89 234-24123img, fax: +49 89 234-154123img














14.11.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de



























Language: English
Company: Infineon Technologies AG

Am Campeon 1-12

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
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





628525  14.11.2017 



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