LONDON – Expected problems in the automotive supply chain failed to materialize for Infineon Technologies AG in the second quarter and helped the German chip maker turn in higher than expected sales and profits in its third fiscal quarter ended June 30.
Infineon (Munich, Germany), which has divested itself of numerous operations in recent quarters to focus on chips for the industrial, automotive, security and energy applications, made a net profit of 190 million euro on revenues of 1,043 million euro in its third fiscal quarter.
Sales revenue was up 5 percent sequentially and 18 percent ahead of the same quarter a year before. Net income on continuing operations was 175 million euro, up from 173 million euro in the previous quarter and up from 103 million euro in the same quarter a year before.
The company said the results come in ahead of market expectations and that Infineon had grown faster than the market and its direct competitors.
"Our excellent results continue to prove that Infineon's focus on energy efficiency, mobility and security is the right strategy," said Peter Bauer, CEO of Infineon, in a statement.
The sales growth was driven by demand in the industrial & multimarket and automotive sectors. The second was counter to expectations, which had predicted a negative impact from disruptions in the automotive supply chain after the Japan earthquake.
However, Infineon gave a flat outlook for the fourth fiscal and third calendar quarter. Infineon expects increased revenues from industrial and multimarket to be balance by a seasonal decline in the automotive sector.