Corporate | 31 July 2012 07:30
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Infineon Technologies AG / Key word(s): Quarter Results
Quarter Results / Final Results Infineon reports results for the third quarter of the 2012 fiscal year Revenue approximately unchanged; Segment Result Margin reflects strategic investments – Third-quarter revenue of Euro 990 million approximately unchanged compared to the previous quarter; Segment Result of Euro 126 million (12.7 percent margin) – Outlook for fourth quarter 2012 confirmed: revenue flat to down slightly and Segment Result Margin of around 12 percent expected – Planned investments in 2013 fiscal year to be significantly lower than in 2012 fiscal year Neubiberg, Germany, July 31, 2012 – Infineon Technologies AG today reported results for the third quarter of the 2012 fiscal year (as of June 30, 2012).
'Growth and Margin are currently below plan, reflecting global uncertainties. The underlying trends for energy efficiency, mobility and security business nevertheless remain positive. We will therefore continue our policy of strategic investment, firmly convinced that this is the only way for Infineon to extend its market leadership in the future. That said, we will make savings now wherever savings are to be made. With this, the cost situation remains manageable even in the face of current market conditions', stated Peter Bauer, CEO of Infineon Technologies AG.
DETAILS WITH REGARD TO GROUP EARNINGS IN THE THIRD QUARTER OF FISCAL YEAR 2012
Segment Result fell from Euro 144 million in the second quarter to Euro 126 million in the third quarter while the Segment Result Margin dropped from 14.6 percent to 12.7 percent. The principal reasons for the decrease were a higher expense for amortization and depreciation and increased research and development expenditures. As in previous quarters, the exchange rate risk was hedged according to Company policy. As a consequence, there was no positive exchange rate impact at the level of Segment Result. Income from continuing operations for the third quarter amounted to Euro 90 million, down from Euro 109 million one quarter earlier. Earnings per share from continuing operations (basic and diluted) fell from Euro 0.10 per share in the previous quarter to Euro 0.08 per share. The result from discontinued operations for the third quarter was a loss of Euro 8 million, compared to a profit of Euro 2 million in the previous quarter. Earnings per share from discontinued operations (basic and diluted) were unchanged at Euro 0.00. Net income for the third quarter amounted to Euro 82 million, down from the Euro 111 million reported one quarter earlier. Third quarter basic and diluted earnings per share were Euro 0.08 compared with Euro 0.10 in the previous quarter. Investments , which the Company defines as the sum of purchases of property, plant and equipment, purchases of intangible assets and internally generated assets, amounted to Euro 158 million in the third quarter, compared to Euro 192 million in the preceding quarter. The expense for depreciation and amortization went up quarter-on-quarter from Euro 103 million to Euro 113 million. Free cash flow from continuing operations decreased from negative Euro 10 million in the second quarter to negative Euro 22 million in the third, primarily reflecting an increase in net current assets, as inventory levels increased and payables to suppliers decreased due to payment of investments made in the previous quarter. The gross cash position decreased marginally from Euro 2,190 million as at March 31, 2012 to Euro 2,150 million at June 30, 2012. The net cash position amounted to Euro 1,907 million, compared to Euro 1,927 million three months earlier.
OUTLOOK FOR FOURTH QUARTER OF FISCAL YEAR 2012 CONFIRMED
OUTLOOK FOR FISCAL YEAR 2012
MEASURES AFFECTING COSTS AND LEVELS OF INVESTMENT
Due to uncertainties in the state of the global economy, current and near-term foreseeable sales revenue levels are significantly lower than originally forecasted. As a consequence, the Segment Result Margin is currently below the target of 15 percent averaged over the full economic cycle. Nevertheless, RoCE stands at 20 percent and is thus still higher than the Company's cost of capital. The Management Board has now initiated measures to safeguard the margin even if sales revenue only grows at a modest pace. Worldwide headcount was frozen starting in July. In addition, investments planned for the 2013 fiscal year are to be reduced sharply compared to the original plan and will be significantly lower than in the 2012 fiscal year. The Management Board continues to observe demand and revenue trends very closely and is evaluating further measures.
CHANGE AT CEO LEVEL
'With effect from October 1, 2012, I will be handing over the reins in the Executive Board to my long-serving colleague Dr. Reinhard Ploss. Over the past four years, we have worked together to restructure the Company and laid the basis for future growth by focusing on products and services in the fields of energy efficiency, mobility and security', commented Peter Bauer. 'Investments in recent quarters now mean that Infineon can react very quickly to any rise in customer demand, which will enable it to win market share as soon as the global economy picks up. I wish my successor and the Company every success on the next part of the journey and thank employees, customers and investors for their trust over the years', continued Bauer'. Infineon segments' performance in the third quarter of the 2012 fiscal year can be found in the quarterly information at http://www.infineon.com All figures in this quarterly information are preliminary and unaudited. ANALYST AND PRESS TELEPHONE CONFERENCES Infineon Technologies AG will hold a telephone conference for analysts and investors (in English only) on July 31, 2012 at 10.00 am (CEST), 4:00 a.m. (US EDT), during which Infineon's third-quarter performance will be presented. In addition, a telephone press conference with the Management Board will take place at 11.30 am (CEST), 5:30 a.m. (US EDT). This conference will be transmitted, in both German and English, over the Internet. The conferences will be available live and as downloads on Infineon's website at www.infineon.com/investor . The Q3 Investor Presentation is available (in English) at: http://www.infineon.com/cms/en/corporate/investor/reporting/index.html INFINEON FINANCIAL CALENDAR (*preliminary) – Aug 29, 2012 Commerzbank Sector Conference Week, Frankfurt – Sep 26, 2012 Baader Investment Conference, Munich – Nov 14, 2012* Earnings Release for the Fourth Quarter and Full 2012 Fiscal Year – Nov 15 – 16, 2012 Morgan Stanley TMT Conference, Barcelona – Nov 20 – 21, 2012 Company roadshow – including presentation by Dr. Helmut Gassel, Division President, Industrial Power Control (IPC), London – Nov 27 – 28, 2012 Credit Suisse Technology Conference, Scottsdale/Arizona ABOUT INFINEON Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, mobility, and security. In the 2011 fiscal year (ending September 30), the Company reported sales of Euro 4.0 billion with close to 26,000 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).
D I S C L A I M E R
Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements. End of Corporate News 31.07.2012 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and 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: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart; Terminbörse EUREX | |
| End of News | DGAP News-Service |
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| 179635 31.07.2012 |