Infineon Technologies boosts full-year outlook
By Abigail Townsend
Date: Monday 09 May 2022
(Sharecast News) - Infineon Technologies, Europe's largest chipmaker, upped its full-year guidance on Monday despite a challenging backdrop.
The German firm acknowledged that the predictability of both revenues and earnings was currently "strongly limited" by various geopolitical and macroeconomics factors.
Despite that, however, it now expects full-year revenues to come in at €13.5bn, plus or minus €500m, in contrast to its earlier guidance for €13bn, with sales in its automotive unit - the largest division - and connected secure systems unit expected to grow at a "slightly faster" percentage rate than group revenue overall.
The updated guidance came as Infineon posted second-quarter revenues of €3.3bn, up 4% on the first quarter and 22% year-on-year. The figure was ahead of forecasts, with most analysts looking for revenues closer to €3.21bn.
Operating profits were €618m, compared to €314m a year previously or €617m three months ago, while basic earnings per share from continuing operations edged up to €0.36 from €0.35 quarter-on-quarter. Pre-tax profits rose to €469m from €203m in 2021.
Chief executive Jochen Hanebeck said: "Infineon continues to perform well within an increasingly challenging environment.
"Global uncertainties, in particular the war in Ukraine and the further course of the coronavirus pandemic, are placing stress on supply chains. At the same time, demand for our products and solutions continues to exceed supply significantly."
Demand has surged in recent years for items that use semiconductors, from mobile phones and laptops to modern cars. But supply, hindered by lockdowns at the height of the pandemic, has struggled to keep up.
Supply constraints had looked to be easing as global lockdown restrictions eased, but since the start of the year the war in Ukraine, soaring energy costs and rolling lockdowns in China have weighed heavily on supply chains.
As at 1200 shares in Infineon were off 4%.
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