Automotive, Industrial Power once again drive Infineon's sales

April 29, 2014 // By Christoph Hammerschmidt
The latest quarterly figures from chipmaker Infineon acknowledge the solid growth throughout the company's business segments. In contrast to competitor ST who also published its figures these days, Infineon managed to again increase total sales. The outlook is even slightly better.

Again, the automotive business (ATV) was by far the largest item in the company's figures with a share of 46% year-over-year. Infineon reports strong demand in particular from German premium manufacturers such as Audi, BMW, Daimler and Porsche which currently swim on a wave of success throughout the world. Nevertheless, ATV is expected to grow "only" at average of Infineon's entire business of about 14%. Net income rose from €33 million in the same quarter a year ago to €124 million during the past quarter, however these figures are not really comparable since they contain a number of extraordinary effects.

While ATV increased by 14% year-on-year, the Industrial Power Control (IPC) segment went on the passing lane with a sales growth of 28% to a total of €185 million. The Power Management and Multimarket (PMM) segment grew by 11%, the Chip Card & Security (CCS) segment by 12 %. In the light of these figures, IPC contributed 18% to Infineon's total sales, PMM 24% and CCS 12%. According to Ploss, the positive outlook should continue through the second half of the year.

For the current quarter (the third in its business year), Infineon expects a revenue increase between 4 and 8 %; the expectations for the entire FY 2014 were slightly upgraded to the range between 7 and 11%. Interesting: The Industrial Power Control segment is expected to grow significantly above the group average. Market watchers see a connection to demand from Siemens' railway production. While there is a possibility that Siemens will sell this business to French competitor Alstom with potentially negative effects for Infineon's power electronics business, such a move is too far into the future to become effective in FY2014 - and it is still a remote option anyway.