DGAP-News: Infineon Technologies AG / Key word(s): Quarter
Results/Final Results
Infineon Technologies AG: INFINEON POSTS SOLID FOURTH-QUARTER EARNINGS
AND PROPOSES A DIVIDEND OF EUR0.18 PER SHARE
27.11.2014 / 07:30
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- Q4 FY 2014: REVENUE EUR1,175 MILLION; SEGMENT RESULT OF EUR188 MILLION;
SEGMENT RESULT MARGIN OF 16.0 PERCENT
- FY 2014: REVENUE UP BY 12 PERCENT TO EUR4,320 MILLION, SEGMENT RESULT
OF EUR620 MILLION, SEGMENT RESULT MARGIN OF 14.4 PERCENT
- OUTLOOK FOR Q1 FY 2015: DUE TO NORMAL SEASONALITY, REVENUE EXPECTED TO
DECREASE BY BETWEEN 5 AND 9 PERCENT WITH SEGMENT RESULT MARGIN BETWEEN
10 AND 13 PERCENT
- OUTLOOK FOR FY 2015: REVENUE INCREASE OF 8â¯PERCENT, PLUS OR MINUS 2
PERCENTAGE POINTS, COMPARED TO PREVIOUS FISCAL YEAR, WITH SEGMENT
RESULT MARGIN AT ABOUT 14 PERCENT
- MANAGEMENT BOARD AND SUPERVISORY BOARD PROPOSE DIVIDEND OF EUR0.18 PER
SHARE FOR 2014 FISCAL YEAR
Neubiberg, Germany, November 27, 2014 - Infineon Technologies AG today
reports its results for the fourth quarter and the 2014 fiscal year, both
ended September 30, 2014.
<pre>
in Euro million Q3 FY14 Q3 FY14 +/- in %
Revenue 1,175 1,110 6
Segment Result 188 170 11
Segment Result Margin [in %] 16.0 15.3
Income (loss) from continuing operations 148 143 3
Income (loss) from discontinued operations, 33 -
net of income taxes
Net income 181 143 27
in Euro
Basic earnings (loss) per share from 0.13 0.13 -
continuing operations1
Basic earnings (loss) per share from 0.03 - +++
discontinued operations1
Basic earnings per share1 0.16 0.13 23
Diluted earnings (loss) per share from 0.13 0.13 -
continuing operations1
Diluted earnings (loss) per share from 0.03 - +++
discontinued operations1
Diluted earnings per share1 0.16 0.13 23
</pre>
1 The calculation for earnings per share is based on unrounded figures.
"We have made good use of the opportunities open to us in a dynamically
growing market. We were well prepared to handle steeply rising demand from
our customers and therefore always able to deliver reliably. Revenue,
earnings and margin all saw solid increases, in line with our expectations.
Infineon's Management Board and Supervisory Board want shareholders to
participate in this success and are therefore proposing a dividend of
EUR0.18 per share," stated Dr. Reinhard Ploss, CEO of Infineon Technologies
AG. "Despite a challenging market environment, we plan to continue growing
in the current 2015 fiscal year - in addition to growth resulting from the
planned acquisition of International Rectifier."
GROUP EARNINGS IN THE FOURTH QUARTER OF THE 2014 FISCAL YEAR
Revenue generated by the Infineon Group grew by 6 percent in the fourth
quarter of the 2014 fiscal year to EUR1,175 million, compared with EUR1,110
million in the preceding quarter. Revenue growth was particularly strong in
the Industrial Power Control (IPC), Power Management & Multimarket (PMM)
and Chip Card & Security (CCS) segments. From the strong revenue base
achieved in the preceding quarters, revenue for the Automotive (ATV)
segment grew by a further 2 percent.
Segment Result also increased on the back of this revenue growth, rising by
11 percent from EUR170 million in the preceding quarter to EUR188 million
in the fourth quarter of the 2014 fiscal year, with the Segment Result
Margin improving from 15.3 percent to 16.0 percent.
Income from continuing operations increased slightly from EUR143 million to
EUR148 million in the fourth quarter of the 2014 fiscal year. In addition
to the improved Segment Result, two other factors influenced this
development. On the one hand, operating income decreased from EUR165
million in the third quarter to EUR118 million in the fourth quarter,
mainly resulting from a fine of EUR83 million imposed by the European
Commission in conjunction with antitrust proceedings against several
manufacturers of semiconductors used in chip card applications (expense
recorded in other operating expenses). A tax benefit of EUR29 million
resulting from the revaluation of deferred tax assets on tax loss
carry-forwards worked in the opposite direction.
The result from discontinued operations improved from nil in the third
quarter to EUR33 million in the fourth quarter, primarily due to the
partial reversal of provisions to reflect the partial settlement reached
with the insolvency administrator of Qimonda AG in September.
Fourth-quarter net income improved to EUR181 million, following on from the
EUR143 million recorded in the previous quarter. Earnings per share (basic
and diluted) increased from EUR0.13 in the third quarter to EUR0.16 in the
fourth quarter.
Investments - which Infineon defines as the sum of purchases of property,
plant and equipment, purchases of intangible assets, and capitalized
development costs - amounted to EUR242 million in the fourth quarter and
were thus significantly higher than the previous quarter's figure of EUR144
million. Depreciation and amortization increased slightly from EUR131
million in the third quarter to EUR137 million in the fourth.
Free cash flow from continuing operations increased significantly
quarter-on-quarter from EUR78 million to EUR158 million. The considerably
higher level of net cash provided by operating activities was only partly
reduced by increased investments.
Due to the strong free cash flow, the gross cash position amounted to
EUR2,418 million at September 30, 2014, compared with EUR2,263 million at
the end of June 2014. The net cash position also improved over the same
period from EUR2,073 million to EUR2,232 million.
DIVIDEND FOR THE 2014 FISCAL YEAR: EUR0.18 PER SHARE
The Management Board and the Supervisory Board of Infineon Technologies AG
have decided to put forward a proposal at the Annual General Meeting (to be
held in Munich on February 12, 2015) that the dividend for the 2014 fiscal
year be raised by EUR0.06 to EUR0.18. This proposed level of dividend is at
the upper end of the range of EUR0.16 to EUR0.18 per share communicated in
May 2014.
Infineon's strategy is to pursue a dividend policy that enables
shareholders to participate appropriately in growing earnings or, in times
of flat or declining earnings and/or with negative free cash flows, to keep
the dividend at a constant level.
OUTLOOK FOR FIRST QUARTER OF 2015 FISCAL YEAR
Due to the seasonal decline of demand towards the end of the calendar year,
Infineon expects revenue to decrease by between 5 and 9 percent in the
first quarter of the 2015 fiscal year. The first-quarter Segment Result
Margin is forecast to come in at between 10 and 13 percent. Revenue is
expected to be lower in all four segments, with ATV recording the smallest
decrease in percentage terms.
OUTLOOK FOR THE 2015 FISCAL YEAR
For the 2015 fiscal year, based on an assumed exchange rate of US$1.30 to
the euro, Infineon forecasts a year-on-year growth in revenue of 8 percent,
plus or minus 2 percentage points. At the mid-point of the planned range
for revenue growth, the Segment Result Margin is expected to be about 14
percent.
The ATV, PMM and CCS segments are forecast revenue to grow either in line
with or slightly faster than the average for the Group as a whole. Revenue
growth in the IPC segment is expected to be significantly below the Group
average. Planned investments for the 2015 fiscal year are around EUR700
million, containing an amount of about 13 percent of sales for investments
for equipment within our operating facilities and for intangibles as one
part. In addition between EUR60 and EUR70 million will be spent for
readying our second shell in Kulim, Malaysia, for volume production and
payments of approximately EUR20 million are required for the purchase of
Qimonda patents in conjunction with the settlement recently reached with
the insolvency administrator of Qimonda AG. Depreciation and amortization
should amount to approximately EUR600 million.
PLANNED ACQUISITION OF INTERNATIONAL RECTIFIER
On August 20, 2014 Infineon announced its intention to acquire all of the
shares of the US semiconductor manufacturer International Rectifier for
US$40 per share. At the Extraordinary Meeting of the shareholders of that
entity on November 4, 2014, the sale was approved with a 99.5 percent
shareholder vote. The acquisition now only requires the approval of the
relevant regulatory authorities. Subject to the necessary approvals,
closing is expected towards the end of the 2014 calendar year or at the
beginning of the 2015 calendar year.
Infineon segments' performance in the fourth quarter of the 2014 fiscal
year can be found in the quarterly information at http://www.infineon.com.
All figures in this quarterly information are preliminary and unaudited.
ANALYST TELEPHONE CONFERENCE AND PRESS CONFERENCE
Infineon will host a telephone conference call for analysts and investors
(in English only) on November 27, 2014 at 9:30 am (CET), 3:30 am (EST).
During the call, the Infineon Management Board will present the Company's
results from the fourth quarter and 2014 fiscal year. In addition, the
Management Board will host a live press conference at 11:00 am (CET), 5:00
am (EST). It can be followed over the Internet in both English and German.
Both conferences will also be available live and for download on Infineon's
website at www.infineon.com/investor.
The Q4 Investor Presentation is available (in English only) at:
http://www.infineon.com/cms/en/corporate/investor/reporting/index.html
The 2014 annual report will be published starting today at about 10.00 am
(CET) on Infineon's website as well the website of Deutsche Börse.
www.infineon.com/annualreport
INFINEON FINANCIAL CALENDAR (*preliminary)
- Dec 2-3, 2014 Credit Suisse TMT Conference, Scottsdale/Arizona
- Jan 29, 2015* Earnings Release for the First Quarter of the 2015 Fiscal
Year
- Feb 12, 2015 Annual General Meeting 2015, Munich
- May 5, 2015* Earnings Release for the Second Quarter of the 2015 Fiscal
Year
- Jul 30, 2015* Earnings Release for the Third Quarter of the 2015 Fiscal
Year
- Nov 26, 2015* Earnings Release for the Fourth Quarter and Full 2015
Fiscal Year
ABOUT INFINEON
Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and
system solutions addressing three central challenges to modern society:
energy efficiency, mobility, and security. In the 2014 fiscal year (ending
September 30), the Company reported sales of Euro 4.3 billion with around
29.800 employees worldwide. Infineon is listed on the Frankfurt Stock
Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market
OTCQX International Premier (ticker symbol: IFNNY).
Further information is available at www.infineon.com.
This news release is available online at www.infineon.com/press.
D I S C L A I M E R
This press release contains forward-looking statements about the business,
financial condition and earnings performance of the Infineon Group.
These statements are based on assumptions and projections resting upon
currently available information and present estimates. They are subject to
a multitude of uncertainties and risks. Actual business development may
therefore differ materially from what has been expected.
Beyond disclosure requirements stipulated by law, Infineon does not
undertake any obligation to update forward-looking statements.
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Language: English
Company: Infineon Technologies AG
Am Campeon 1-12
85579 Neubiberg
Germany
Phone: +49 (0)89 234-26655
Fax: +49 (0)89 234-955 2987
E-mail: investor.relations@infineon.com
Internet: www.infineon.com
ISIN: DE0006231004
WKN: 623100
Indices: DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart; Terminbörse EUREX
End of News DGAP News-Service
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299873 27.11.2014
DGAP-News: Infineon Technologies AG: INFINEON POSTS SOLID FOURTH-QUARTER EARNINGS AND PROPOSES A DIVIDEND OF EUR0.18 PER SHARE
| Source: EQS Group AG