– Q2 FY 2024: Income €3.632 billion, Phase End result €707 million, Phase End result Margin 19.5 %
– Outlook for FY 2024: Primarily based on an assumed trade price of US$1.10 to the euro, Infineon now expects to generate income of round €15.1 billion plus or minus €400 million (beforehand €16 billion plus or minus €500 million), with a Phase End result Margin of round 20 % (beforehand within the low to mid-twenties proportion vary) on the mid-point of the guided income vary. Adjusted gross margin might be within the low-forties proportion vary (beforehand within the low to mid-forties proportion vary). Investments are deliberate at round €2.8 (beforehand round 2.9 billion). Adjusted Free Money Circulation of about €1.6 billion (beforehand €1.8 billion) and reported Free Money Circulation of about €0 million (beforehand about €200 million) at the moment are anticipated
– Outlook for Q3 FY 2024: Primarily based on an assumed trade price of US$1.10 to the euro, income of round €3.8 billion anticipated. On this foundation, the Phase End result Margin is forecast to be within the high-teens proportion vary
Infineon Applied sciences AG is reporting outcomes for the second quarter of the 2024 fiscal 12 months (interval ended 31 March 2024).
„Within the prevailing troublesome market atmosphere, Infineon delivered a stable second quarter”, says Jochen Hanebeck, CEO of Infineon. “Many finish markets have remained weak attributable to financial circumstances, whereas clients and distributors have continued to cut back semiconductor stock ranges. Weak demand for shopper purposes persists. There has additionally been a noticeable deceleration in progress within the automotive sector. We’re subsequently taking a cautious method to the outlook for the remainder of the fiscal 12 months and are reducing our forecast. Within the medium to long run, decarbonization and digitalization will proceed to be sturdy structural drivers of our worthwhile progress. With a view to notice the total potential of our Firm, we are going to additional strengthen our competitiveness. To this finish, we’re launching the company-wide “Step Up” program. We’re aiming to attain structural enhancements in our Phase End result within the excessive triple-digit million euro vary per 12 months.”
Group efficiency within the second quarter of the 2024 fiscal 12 months
Within the second quarter of the 2024 fiscal 12 months, Infineon generated Group income of €3,632 million. This was 2 % down on income within the prior quarter of €3,702 million. Within the Automotive (ATV) section, income remained secure in contrast with the prior quarter, whereas within the Inexperienced Industrial Energy (GIP) and Energy & Sensor Programs (PSS) segments income was decrease. The Related Safe Programs (CSS) section noticed a slight enhance in income from the primary quarter of the 2024 fiscal 12 months.
The gross margin achieved within the second quarter of the present fiscal 12 months was 38.6 %, in contrast with 43.2 % within the prior quarter. The adjusted gross margin was 41.1 %, in contrast with 44.9 % within the first quarter of the fiscal 12 months.
The Phase End result within the second quarter of the 2024 fiscal 12 months was €707 million, in contrast with €831 million within the prior quarter. The Phase End result Margin achieved was 19.5 %, in contrast with 22.4 % within the first quarter.
The Non-Phase End result for the second quarter of the 2024 fiscal 12 months was a web lack of €211 million, in contrast with a web lack of €129 million within the prior quarter. The second-quarter Non-Phase End result comprised €91 million regarding price of products offered, €18 million regarding analysis and growth bills and €54 million regarding promoting, basic and administrative bills. As well as, it included web working bills of €48 million. This determine consists of impairment losses of €37 million regarding the write-down of belongings in reference to the deliberate sale of two backend manufacturing websites in Cheonan (South Korea) and Cavite (Philippines).
Working revenue for the second quarter of the 2024 fiscal 12 months reached €496 million, in contrast with €702 million within the prior quarter.
The monetary end result within the second quarter of the present fiscal 12 months was a web lack of €12 million, in contrast with a web acquire of €25 million within the prior quarter. The monetary end result for the primary quarter included curiosity revenue of €32 million arising on the discharge of a tax threat provision along with the acquisition of Cypress.
The tax expense within the second quarter of the 2024 fiscal 12 months amounted to €93 million, in contrast with €134 million within the prior quarter.
Revenue from persevering with operations within the second quarter of the present fiscal 12 months was €394 million, in contrast with €598 million within the first quarter. The end result from discontinued operations was €0 million, after a lack of €11 million within the previous quarter. The revenue for the interval achieved within the second quarter of the present fiscal 12 months was €394 million. Within the first quarter of the 2024 fiscal 12 months, the revenue for the interval was €587 million.
Earnings per share from persevering with operations decreased within the second quarter of the 2024 fiscal 12 months to €0.30, from €0.45 within the prior quarter (fundamental and diluted in every case). Adjusted earnings per share1 (diluted) stood at €0.42 on the finish of the second quarter of the present fiscal 12 months, in contrast with €0.53 one quarter earlier.
Investments – which Infineon defines because the sum of investments in property, plant and gear, investments in different intangible belongings and capitalized growth prices –totaled €643 million within the second quarter of the present fiscal 12 months, in contrast with €653 million within the first quarter. Depreciation and amortization within the second quarter of the 2024 fiscal 12 months amounted to €467 million, in contrast with €456 million within the previous quarter.
Free Money Flow2 improved within the second quarter of the present fiscal 12 months to €82 million, in contrast with a adverse determine of €1,597 million within the prior quarter. The determine for the primary quarter of the 2024 fiscal 12 months included buy worth funds of round €800 million regarding the acquisition of corporations, primarily the acquisition of GaN Programs Inc. Annual bonus funds had been additionally made within the first quarter of the 2024 fiscal 12 months for the report 2023 fiscal 12 months.
The gross money place decreased from €2,712 million on the finish of the primary quarter of the 2024 fiscal 12 months to €2,583 million on the finish of the second quarter. In the midst of the second quarter, the dividend of €456 million was paid and €233 million was utilized to purchase again personal shares associated with the worker inventory possibility plan. Set towards this was the problem of a €500 million bond. Monetary debt at 31 March 2024 stood at €5,941 million, in contrast with €5,398 million at 31 December 2023. The online money place was subsequently a adverse quantity of €3,358 million, in contrast with a adverse quantity of €2,686 million on the finish of the primary quarter.
Phase earnings for the second quarter of the 2024 fiscal 12 months
ATV section income remained secure within the second quarter of the 2024 fiscal 12 months, totaling €2,078 million, in contrast with €2,085 million within the first quarter. Set towards growing revenues in electromobility was a barely decrease degree of income from ADAS. Income from classical automobile elements was unchanged. The Phase End result within the second quarter of the present fiscal 12 months was €512 million, in contrast with €564 million within the first quarter of the 2024 fiscal 12 months. The Phase End result Margin achieved was 24.6 %, in contrast with 27.1 % within the prior quarter.
Within the second quarter of the 2024 fiscal 12 months, GIP section income decreased by 4 % to €469 million, in contrast with €487 million within the first quarter. On account of excessive direct buyer and distributor stock, demand within the areas of renewable power and power infrastructure was weaker. The Phase End result within the second quarter of the present fiscal 12 months amounted to €89 million, in contrast with €130 million within the first quarter of the 2024 fiscal 12 months. The Phase End result Margin was 19.0 %, in contrast with 26.7 % within the prior quarter.
PSS section income decreased within the second quarter of the 2024 fiscal 12 months by 7 % to €713 million, in contrast with €765 million within the prior quarter. The rationale for the decline in income was ongoing weak demand for elements for PCs, notebooks, shopper electronics, battery-powered gadgets and microinverters for roof-top photo voltaic methods. Income from silicon microphones and elements for smartphones continued to get better. The Phase End result achieved within the second quarter of the present fiscal 12 months was €64 million, in contrast with €99 million within the first quarter. The Phase End result Margin was 9.0 %, in contrast with 12.9 % within the prior quarter.
CSS section income elevated barely within the second quarter of the 2024 fiscal 12 months to €371 million, up from €364 million within the first quarter. The expansion in income of two % was primarily the results of the next degree of gross sales regarding Wi-Fi. The Phase End result rose to €42 million, from €37 million within the prior quarter. The Phase End result Margin elevated to 11.3 %, from 10.2 % within the first quarter.
Outlook for the 2024 fiscal 12 months
Primarily based on an assumed trade price of US$1.10 to the euro, income within the 2024 fiscal 12 months is now anticipated to be round €15.1 billion plus or minus €400 million (beforehand €16 billion plus or minus €500 million). The adjustment of the forecast for the fiscal 12 months is because of extended weak demand in main goal markets in addition to ongoing destocking at direct clients and distributors.
Within the Automotive section, income progress within the low to mid-single-digit proportion vary is now anticipated. The lower in income within the Inexperienced Industrial Energy section compared with the prior fiscal 12 months is anticipated to be a low-teens proportion determine. The decline in income in Energy & Sensor Programs is forecast to be within the high-teens and within the Related Safe Programs section within the low-twenties proportion vary. With anticipated income within the 2024 fiscal 12 months of €15.1 billion, the adjusted gross margin needs to be within the low-forties proportion vary and the Phase End result Margin is anticipated to be round 20 %. The Phase End result Margin for the Automotive section is anticipated to be on the decrease finish of the aforementioned vary of between 25 and 28 %.
Investments – which Infineon defines because the sum of investments in property, plant and gear, investments in different intangible belongings and capitalized growth prices – at the moment are being barely adjusted to a determine of about €2.8 billion (beforehand about 2.9 billion) for the 2024 fiscal 12 months. The main target right here might be investments within the manufacturing module on the Kulim website (Malaysia), which is designed to supply compound semiconductors, in addition to the manufacturing module in Dresden (Germany), designed to supply analog/mixed-signal elements.
Depreciation and amortization are anticipated to be round €1.9 billion within the 2024 fiscal 12 months, of which round €400 million is attributable to amortization of buy worth allocations arising primarily from the acquisition of Cypress. Adjusted Free Money Circulation, which is adjusted for funding in massive frontend buildings and the acquisition of GaN Programs, is now anticipated to be about €1.6 billion (beforehand €1.8 billion), which is about 11 % of the forecast income for the 12 months of €15.1 billion. Reported Free Money Circulation needs to be round €0 million (beforehand €200 million). Return on Capital Employed (RoCE) is now forecast to achieve round 9 %. When the figures for Q1 FY 2024 had been printed, RoCE for the 2024 fiscal 12 months was anticipated to be round 11 %.
Outlook for the third quarter of the 2024 fiscal 12 months
Primarily based on an assumed trade price of US$1.10 to the euro, Infineon expects to generate income of round €3.8 billion within the third quarter of the 2024 fiscal 12 months. Income within the ATV and CSS segments ought to develop in-line with group common quarter-on-quarter. Quarter-on-quarter progress price for the GIP section is anticipated to be belowand for PSS past group common. Primarily based on this income forecast for the Group, the Phase End result Margin needs to be within the high-teens proportion vary.
Structural enchancment program “Step Up” to strengthen competitiveness
The Firm needs to additional strengthen its competitiveness. To this finish, Infineon is beginning the “Step Up” program specializing in a focused, sustainable enchancment of its price construction. This system consists of varied packages of measures specializing in the areas of producing productiveness, portfolio administration, pricing high quality and working price optimization with out compromising the Firm’s progressive power.
This system is anticipated to have a constructive impact on the Phase End result within the excessive triple-digit million euro vary per 12 months (primarily based on the 2023 fiscal 12 months). The primary monetary advantages are anticipated in the middle of the 2025 fiscal 12 months. The complete impact is anticipated to point out within the first half of the 2027 fiscal 12 months.
Phone press convention and analyst phone convention
The Administration Board of Infineon will host a phone press convention with the media at 8:00 am (CEST), 2:00 am (EDT). It may be adopted over the Web in each English and German. As well as a phone convention name together with a webcast for analysts and buyers (in English solely) will happen at 9:30 am (CEST), 3:30 am (EDT). Throughout each calls, the Infineon Administration Board will current the Firm’s outcomes for the second quarter of the 2024 fiscal 12 months in addition to the outlook for the third quarter and the 2024 fiscal 12 months. The conferences can even be obtainable dwell and for obtain on Infineon’s web site at www.infineon.com/investor
The Q2 Investor Presentation is offered (in English solely) at:
https://www.infineon.com/cms/en/about-infineon/investor/reports-and-presentations/
FINANCIAL INFORMATION
In accordance with IFRS – Unaudited
The next monetary knowledge pertains to the second quarter of the 2024 fiscal 12 months ended 31 March 2024 and the corresponding prior quarter and prior 12 months interval.
Revenues, Outcomes and Margins of the Segments
Phase Result’s outlined as working revenue excluding sure web impairments and reversal of impairments, the influence on earnings of restructuring and closures, share-based cost, acquisition-related depreciation/amortization and different expense, influence on earnings of gross sales of companies or pursuits in subsidiaries, and different revenue (expense).
Reconciliation of Phase End result to working revenue
Reconciliation to adjusted earnings and adjusted earnings per share – diluted
Earnings per share in accordance with IFRS are influenced by quantities regarding buy worth allocations for acquisitions (particularly Cypress), in addition to by different distinctive objects. To allow higher comparability of working efficiency over time, Infineon computes adjusted earnings per share (diluted) as follows:
Adjusted revenue (loss) for the interval and adjusted earnings per share (diluted) shouldn’t be seen as a alternative or superior efficiency indicator, however reasonably as extra info to the revenue (loss) for the interval and earnings per share (diluted) decided in accordance with IFRS.
Reconciliation to adjusted price of products offered and gross margin
The price of items offered and the gross margin in accordance with IFRS are influenced by quantities regarding buy worth allocations for acquisitions (particularly Cypress) in addition to by different distinctive objects. To allow higher comparability of working efficiency over time, Infineon computes the adjusted gross margin as follows:
Adjusted price of products offered and the adjusted gross margin shouldn’t be seen as a alternative or superior efficiency indicator, however reasonably as extra info to price of products offered and the gross margin decided in accordance with IFRS.
Variety of staff
Consolidated Assertion of Monetary Place
Consolidated Assertion of Money Flows
Gross and Web Money Place
The next desk reveals the gross money place and the web money place. Since some liquid funds are held within the type of monetary investments which for IFRS functions are usually not categorised as money and money equivalents, Infineon stories on its gross and web money positions to be able to present buyers with a greater understanding of its total liquidity state of affairs. The gross and web money positions are decided as follows from the Consolidated Assertion of Monetary Place:
Free Money Circulation
Infineon stories the Free Money Circulation determine, outlined as money flows from working actions and money flows from investing actions, each from persevering with operations, after adjusting for money flows from the acquisition and sale of economic investments. Free Money Circulation serves as a further efficiency indicator, since Infineon holds a part of its liquidity within the type of monetary investments. This doesn’t imply that the Free Money Circulation calculated on this method is offered to cowl different disbursements, as dividends, debt-servicing obligations and different mounted disbursements haven’t been deducted. Free Money Circulation shouldn’t be seen as a alternative or as a superior efficiency indicator, however reasonably as a helpful merchandise of data along with the disclosure of the money circulate reported within the Consolidated Assertion of Money Flows, and as a supplementary disclosure to different liquidity efficiency indicators and different efficiency indicators decided in accordance with IFRS. Free Money Circulation is derived as follows from the Consolidated Assertion of Money Flows:
Condensed Consolidated Assertion of Money Flows
D I S C L A I M E R
This press launch comprises forward-looking statements in regards to the enterprise, monetary situation and earnings efficiency of the Infineon Group.
These statements are primarily based on assumptions and projections resting upon at present obtainable info and current estimates. They’re topic to a large number of uncertainties and dangers. Precise enterprise growth might subsequently differ materially from what has been anticipated. Past disclosure necessities stipulated by regulation, Infineon doesn’t undertake any obligation to replace forward-looking statements.
As a consequence of rounding, numbers introduced all through this press launch and different stories might not add up exactly to the totals supplied and percentages might not exactly mirror absolutely the figures.
All figures talked about on this press launch are unaudited.
