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Infineon cuts investment after poor quarter

Business news |
By Nick Flaherty

The first quarter of 2019 saw revenue of €1,970 million, down 4 per cent, from poor performance in the Automotive (ATV) and Industrial Power Control (IPC) segments. Compared to the Group average, the decline was more pronounced in the Power Management & Multimarket (PMM) segment and noticeably more pronounced in the Digital Security Solutions (DSS) segment. Operating profits fell to €327m from €370m the previous quarter, but net profit was up at from €141m to €254m.

It expects to see growth of 9 per cent this year, lower than expected. 

“So far we have been able to master the challenges of an increasingly difficult business environment well,” said Dr Reinhard Ploss, CEO of Infineon (above). “Despite market headwinds, we expect to be able to grow by about 9 percent in the 2019 fiscal year and gain further market share on the back of healthy structural growth drivers. Our long-term growth prospects remain intact. We will therefore continue to pursue core projects such as the construction of the 300-millimeter cleanroom in Villach, but moderately reduce investments in manufacturing equipment.”

www.infineon.com

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