In­fi­neon warns of weaker de­mand in key mar­kets

The Star Malaysia - StarBiz - - Foreign News -

Covid-19 Roadto re­cov­ery

MUNICH: In­fi­neon re­ported third quar­ter

€220mil seg­ment profit of (Us$259mil), beat­ing

€119mil, an­a­lyst es­ti­mates of but warned the Covid-19 pan­demic con­tin­ues to have a sig­nif­i­cant im­pact on its target mar­kets, re­sult­ing in weaker de­mand in many prod­uct ar­eas.

The Munich-based com­pany said it ex­pects the guided range of its full-year rev­enue to be

€8.5bil. around The third-quar­ter fig­ures in­clude those of In­fi­neon’s Us$8.7bil ac­qui­si­tion of Cy­press Semi­con­duc­tor Corp.

In­fi­neon said it is see­ing con­crete signs of re­cov­ery within the au­to­mo­tive sec­tor, which had been hit par­tic­u­larly hard as a re­sult of the Covid-19 cri­sis.

Chief ex­ec­u­tive of­fi­cer Rein­hard Ploss said the “busi­ness per­for­mance is highly de­pen­dent on how the coro­n­avirus pan­demic con­tin­ues to un­fold world­wide, on the im­pact of the eco­nomic stim­u­lus pack­ages that have been im­ple­mented, and on a va­ri­ety of geopo­lit­i­cal fac­tors”.

€8.5bil Full year rev­enue of about ver­sus

€8.4bil. es­ti­mate of about Target mar­kets in­clude au­to­mo­tive, au­to­ma­tion and trains. While In­fi­neon sees a re­cov­ery in au­to­mo­tive, the sec­tor is still strongly im­pacted by the pan­demic in the third quar­ter.

With the ac­qui­si­tion of Cy­press, In­fi­neon be­came the largest chip­maker for the au­to­mo­tive in­dus­try. Rev­enue for the three-month

€1.97bil €2.17bil pe­riod in­creased from to quar­ter-on-quar­ter. The 9% growth in group rev­enue was mainly at­trib­ut­able to the Power & Sen­sor Sys­tems and Con­nected Se­cure Sys­tems.

Shares rose as much as 4.2% in early trad­ing yes­ter­day. The in­te­gra­tion of the ac­qui­si­tion of Cy­press could be de­layed due to the Covid-19 pan­demic, Ger­man FAZ re­ported in June cit­ing man­age­ment board mem­ber Peter Schiefer.

The com­pany an­nounced a cap­i­tal in­crease

€1bil of about through ABB which will be used to par­tially re-finance the pur­chase price for the ac­qui­si­tion of Cy­press. — Bloomberg

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.