German chipmaker Infineon expects turnover growth in 2020 despite economic headwinds
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E-mail Xinhua, November 13, 2019
BERLIN, Nov. 12 (Xinhua) -- Turnover of Infineon is expected to increase by between 3 and 7 percent in fiscal year 2020, the German computer chip manufacturer announced on Tuesday.
The operational profit margin of Infineon is expected to be at around 16 percent in the upcoming year, according to the chip manufacturer.
For fiscal year 2019 of Infineon, which ended in September, the German chip manufacturer had reported an increase in turnover of 6 percent to a total of 8 billion euros (8.8 billion U.S. dollars). The operating profit margin stood at 16.4 percent in fiscal year 2019.
Infineon would be "feeling the effects of weak global auto demand" and did "not expect any improvement for the time being," said Reinhard Ploss, chief executive officer (CEO) of Infineon, during the presentation of the company's fourth quarter (Q4) results on Tuesday.
In the fourth quarter of 2019, turnover of Infineon stagnated at prior year's level and amounted to slightly over 2 billion euros between July and September.
Demand would have been "particularly strong" for Infineon's power semiconductors for renewable energy applications and in the segment of sensors for consumer devices, according to Infineon CEO Ploss.
However, the general economic environment remained "fraught with macroeconomic and political uncertainty", noted Ploss, adding that the German chip manufacturer would not expect markets to recover before the second half of the upcoming year.
The dividend for fiscal year 2019 was anticipated to remain at 0.27 euros per share, the same level as last year, according to Infineon.
Investors reacted positively following the publication of Infineon's annual results as shares of the German chip manufacturer increased by around 7 percent and were the clear winner in Germany's benchmark stock index DAX on Tuesday midday local time.
After losses in the first half of 2019, shares of Infineon recovered from a 3-year-low of 14 euros per share in June and stood at slightly under 20 euros per share on Tuesday.
U.S. investment bank Goldman Sachs had left its rating for Infineon shares at "Buy" with a price target of 21 euros on Tuesday. The annual targets for the coming 2020 fiscal year were in line with the expectations, said Goldman Sachs analyst Alexander Duval. Enditem
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