Infineon Technologies Returned to 3Q Net Profit Amid 'Unbroken' Chip Demand
August 03 2021 - 2:20AM
Dow Jones News
By Mauro Orru
Infineon Technologies AG said Tuesday that it swung back to a
net profit in the third quarter of fiscal 2021, while revenue
continued its ascent as demand for chips shows no signs of abating
amid a global supply shortage.
The German chip maker posted a net profit for the three months
ended June 30 of 245 million euros ($290.9 million), compared with
a net loss of EUR128 million a year earlier.
Revenue for the quarter climbed to EUR2.72 billion from EUR2.17
billion. However, coronavirus-related constraints on manufacturing
capacity in Malaysia, and the aftermath of the winter storm in
Texas held back revenue growth, the company said.
The company's segment result--a closely watched metric
comparable to adjusted earnings before interest and taxes--rose to
EUR496 million from EUR220 million, with its segment result margin,
or adjusted Ebit margin, up to 18.2% from 10.1%, it said.
Infineon in May had guided for third-quarter revenue between
EUR2.6 billion and EUR2.9 billion, with adjusted Ebit margin at
around 18% at the midpoint.
For the fourth quarter, the company said it expects revenue of
around EUR2.9 billion, with adjusted Ebit margin at around 19%.
"Demand for semiconductors is unbroken," Chief Executive
Reinhard Ploss said. "Inventories are at a historic low; our chips
are being shipped from our fabs straight into the end
applications," he added.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
August 03, 2021 02:11 ET (06:11 GMT)
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