Infineon slightly raises outlook for profitability after strong Q3
Infineon reported a segment result margin - management's preferred measure of operating profitability - of 18 per cent for its fiscal third quarter from April to June, beating the forecast for 15.8 per cent.
Infineon slightly raised its full-year guidance to high-teens percentage gain in its segment result, which is adjusted for special items, up from the mid-teens range it previously projected.
Shares were down 1.9 per cent in pre-market indications after the results were published.
Quarterly revenue of 3.70 billion euros ($4.27 billion) was in line with forecasts, up 3 per cent compared with the previous quarter, and would have grown as much as 9 per cent had the U.S. dollar exchange rate remained unchanged.
Infineon is well-placed to take advantage of growing semiconductor demand for cars and power supply for AI data centres, among other fields, said CEO Jochen Hanebeck.
"Inventory corrections in our target markets have progressed a lot," he said. "However, we and our customers are continuing to navigate our way through an uncertain macroeconomic and geopolitical situation."
At the same time, investments for the fiscal year will now total around 2.2 billion euros, it said, down slightly from 2.3 billion euros previously.
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