Ad-hoc | 13 November 2001 08:02

Infineon Technologies AG english

Infineon Announces Fiscal Year 2001 and Fourth Quarter Results Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– I N F I N E O N F I S C A L Y E A R 2 0 0 1 R E S U L T S Infineon today announced results for its fiscal year 2001 ended September 30, 2001, with revenues of EUR 5.67bn, a decrease of 22 percent from the previous fiscal year. Revenue decline was driven by weaker demand and deteriorating market conditions particularly for memory and mobile communication products. Annual revenues increased by 10 percent in Infineon’s non-memory businesses with significant growth in Wireline Communications, Security and Chip Card ICs as well as Automotive and Industrial segments. EBIT decreased to a loss of EUR 1.02bn down from a positive EBIT of EUR 1.67bn in fiscal year 2000. Earnings were negatively affected by strong price erosion, especially for memory products, and costs of carrying currently unused capacity in most non-memory segments. Excluding inventory write-downs (EUR 358m), acquisition related expenses (EUR 111m), restructuring charges (EUR 117m), impairment charges (EUR 25m) and gains from the sale of non-core businesses (EUR 235m) EBIT amounted to a loss of EUR 648m. Net loss amounted to EUR 591m, down from earnings of EUR 1.13bn in fiscal year 2000. Loss per share was EUR 0.92 compared with earnings per share of EUR 1.83 in fiscal year 2000. Infineon had a net cash position of EUR 568m at the end of the fiscal year 2001. I N F I N E O N F O U R T H Q U A R T E R 2 0 0 1 R E S U L T S Fourth quarter revenues were EUR 1.09bn, a decrease of 15 percent from the previous quarter of fiscal year 2001. Quarterly EBIT decreased to a loss of EUR 882m, down from a loss of EUR 598m in the third quarter of fiscal year 2001. Excluding inventory-write-downs (EUR 142m), acquisition-related expenses (EUR 67m), restructuring charges (EUR 117m), impairment charges (EUR 14m) and gains from the sale of non-core businesses (EUR 33m) quarterly EBIT amounted to a loss of EUR 575m. Net income in the fourth quarter decreased to a loss of EUR 523m, down from a loss of EUR 371m in the previous quarter of fiscal year 2001. Loss per share was EUR 0.76 as compared with loss per share of EUR 0.59 in the third quarter of fiscal year 2001. end of ad-hoc-announcement (c)DGAP 13.11.2001 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Please refer to our website www.infineon.com for the full report and further information. O U T L O O K F O R 2 0 0 2 In fiscal year 2001 market conditions in the semiconductor industry deteriorated significantly. Leading market analysts have again lowered their expectations for the semiconductor market as a whole and currently predict a decline of more than 30 percent for calendar year 2001 as well as a moderate single-digit growth rate for 2002. The market development in the next six months remains uncertain and will be impacted by the slowdown of the world economy and the uncertainty of the current global political environment. These factors will impact the overall product demand, the intensity of competition in an already very competitive market environment, continued pricing pressure and excess manufacturing capacity. After the sharp drop in demand for mobile handsets in the beginning of 2001, market conditions further deteriorated and growth estimates from market analysts have been significantly reduced. Infineon anticipates that the introduction of the next GSM/GPRS generation for mobile phones in the first half of 2002 will generate a moderate recovery in mobile phone demand. The ongoing slowdown of the global economy, especially in the United States, has led to a significant investment decline in telecom infrastructure development which will impact Infineon’s Wireline Communications business. Macroeconomic conditions may also lead to a weaker demand in the automobile market, particularly in Europe and Germany. Following the terrorist attacks in September in the United States, the Security and Chip Card IC business has seen increased interest in its security expertise and advanced biometric solutions. Last month Infineon announced that it will supply secure micro-controller chips for the U.S. Department of Defense smart card program. Infineon believes that these markets will have significant long term growth potential as demand grows for heightened security solutions. Market conditions for memory products remain difficult, primarily due to aggressive pricing by leading DRAM manufacturers. Although inventory levels declined towards the end of the fourth quarter, Infineon expects price pressure for memory products to continue during the next quarter. The current macroeconomic uncertainties and current market conditions make it difficult to forecast results for the entire 2002 fiscal year. In light of the difficult semiconductor market environment, Infineon expects to incur operating losses during such time as selling prices for memory products persist at their current low levels and adverse market conditions continue to affect other parts of our business. Infineon believes the company has sufficient liquidity and fiscal flexibility to mitigate the effects of the current market conditions through the successful implementation of our Impact cost savings and restructuring program, the reductions in planned capital expenditures, available funds and financing opportunities, as well as the potential for strategic sales of non-core assets. ——————————————————————————– WKN: 623100; Index: DAX Listed: Amtlicher Handel in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München, Stuttgart; NYSE 130802 Nov 01