News

# Weak Dollar Dampens Infineon’s Accelerating Momentum

November 14, 2017 by Paul Shepard

Infineon Technologies AG today reported preliminary results for the fourth quarter and the 2017 fiscal year, both ended 30 September 2017. Fourth quarter results included: Revenue of €1,820 million; Segment Result €328 million; Segment Result Margin 18.0 percent; earnings per share €0.16 (basic and diluted); adjusted earnings per share €0.22 (diluted); gross margin 37.5 percent, adjusted gross margin 38.6 percent.

The lower revenue in Q4 compared to Q3 FY 2017 as consequence of significantly weaker US dollar.

“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.

Dr. Reinhard Ploss

“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,” concluded Dr. Ploss.

The outlook for Q1 FY 2018 includes 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

The overall 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), includes 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.