DGAP-News: Infineon Technologies AG: FY 2019: FINAL QUARTER AND FULL YEAR EARNINGS IN LINE WITH EXPECTATIONS - OUTLOOK FOR FY 2020: MARKET RECOVERY NOT IN SIGHT BEFORE SECOND HALF OF FISCAL YEAR; INFINEON NEVERTHELESS SET TO CONTINUE TO GROW AND TO MAINTAIN STABLE MARGINSEQS
Im Artikel erwähnte Wertpapiere: Infineon Technologies
DGAP-News: Infineon Technologies AG
/ Key word(s): Quarter Results/Forecast
- Q4 FY 2019: REVENUE OF EUR2,062 MILLION; SEGMENT RESULT OF EUR311 MILLION; SEGMENT RESULT MARGIN OF 15.1 PERCENT
- FY 2019: REVENUE EUR8,029 MILLION, UP 6 PERCENT YEAR-ON-YEAR; SEGMENT RESULT EUR1,319 MILLION; SEGMENT RESULT MARGIN 16.4 PERCENT
- OUTLOOK FOR FY 2020: BASED ON AN ASSUMED EXCHANGE RATE OF US$1.13 TO THE EURO, YEAR-ON-YEAR REVENUE GROWTH OF 5 PERCENT (PLUS OR MINUS 2 PERCENTAGE POINTS) AND SEGMENT RESULT MARGIN OF AROUND 16 PERCENT AT MID-POINT OF REVENUE GUIDANCE EXPECTED. ABOUT 1.3 BILLION EUROS IN INVESTMENTS PLANNED. FREE CASH FLOW EXPECTED TO COME IN BETWEEN EUR500 AND EUR700 MILLION COMPARED WITH EUR39 MILLION IN THE FY 2019
- OUTLOOK FOR Q1 FY 2020: BASED ON AN ASSUMED EXCHANGE RATE OF US$1.13 TO THE EURO, QUARTER-ON-QUARTER REVENUE DECLINE OF 7 PERCENT (PLUS OR MINUS 2 PERCENTAGE POINTS) ANTICIPATED. AT THE MID-POINT OF REVENUE GUIDANCE, SEGMENT RESULT MARGIN EXPECTED AT AROUND 13 PERCENT
Neubiberg, Germany, 12 November 2019 - Infineon Technologies AG is today reporting results for the fourth quarter as well as for the full 2019 fiscal year, both ended 30 September 2019.
"We have achieved our targets for the fourth quarter, bringing a challenging fiscal year to an end on a good note. Demand was particularly strong for our power semiconductors for renewable energy applications and our sensors for consumer devices," said Dr. Reinhard Ploss, CEO of Infineon. "We are feeling the effects of weak global auto demand and do not expect any improvement for the time being. The general economic environment remains fraught with macroeconomic and political uncertainty. We do not expect markets to recover before the second half of the fiscal year."
1 The calculation for earnings per share and for adjusted earnings per share is based on unrounded figures.
2 The reconciliation of net income to adjusted net income and adjusted earnings per share as well as of cost of goods sold to adjusted cost of goods sold and adjusted gross margin can be found in the quarterly information at www.infineon.com.
With effect from the beginning of 2019 fiscal year, Infineon is applying IFRS 15 (Revenue from Contracts with Customers) and IFRS 9 (Financial Instruments) using the modified retrospective approach. As a result, prior periods are not adjusted to the new accounting policies. Overall, the first-time application of these Standards has not had any material impact.
GROUP PERFORMANCE IN THE FOURTH QUARTER OF THE 2019 FISCAL YEAR
The non-segment result for the three-month period ended in September was a net loss of EUR65 million, compared to a net loss of EUR34 million in the previous quarter. The fourth-quarter non-segment result included EUR17 million of cost of goods sold, EUR12 million of selling, general and administrative expenses and EUR1 million of research and development expenses. In addition, net operating expenses amounting to EUR35 million were incurred.
Operating income for the last quarter of the 2019 fiscal year amounted to EUR246 million, compared to the third-quarter figure of EUR283 million.
The financial result for the three-month period improved to a net expense of EUR18 million. The corresponding figure for the previous quarter had been a net expense of EUR31 million, which had included EUR22 million of costs incurred to hedge stock market-related risks in connection with the share capital increase for the planned acquisition of Cypress.
Income tax expense increased from EUR28 million to EUR64 million quarter-on-quarter.
Income from continuing operations for the fourth quarter decreased to EUR163 million, down from EUR224 million for the previous three-month period. Net income for the quarter amounted to EUR161 million, compared with EUR224 million one quarter earlier. Fourth-quarter income from discontinued operations came in at a loss of EUR2 million after the break-even result reported for the third 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 EUR350 million in the fourth quarter and were thus slightly higher than the preceding quarter's figure of EUR344 million. Depreciation and amortization increased from EUR238 million to EUR244 million quarter-on-quarter.
Free cash flow from continuing operations improved significantly to EUR334 million in the fourth quarter of the 2019 fiscal year, up from EUR63 million in the previous three-month period. Net cash provided by operating activities from continuing operations in the fourth quarter amounted to EUR682 million, compared to EUR396 million in the preceding quarter.
The gross cash position at the end of the 2019 fiscal year amounted to EUR3,779 million, compared to EUR3,435 million at 30 June 2019. The net cash position improved from EUR1,900 million to EUR2,223 million during the three-month period under report. On 25 September 2019, Infineon placed a dual-tranche perpetual hybrid bond, raising EUR1.2 billion in connection with re-financing the planned acquisition of Cypress. The hybrid bond is recognized in equity with effect from 1 October 2019 - the date on which it was issued, and proceeds received - and is therefore not yet included in the cash position figures stated above.
In the third quarter of the 2019 fiscal year, deal-contingent EUR/USD contracts were concluded to hedge exchange rate risks relating to the purchase price obligation arising in connection with the planned acquisition of Cypress. In this context, cash flow hedges were accounted for. Their quarterly fair value adjustments increased equity by EUR98 million at the end of the fourth quarter of the 2019 fiscal year without income statement impact.
PROPOSED DIVIDEND FOR 2019 FISCAL YEAR: EUR0.27 PER SHARE
OUTLOOK FOR THE 2020 FISCAL YEAR
OUTLOOK FOR THE FIRST QUARTER OF THE 2020 FISCAL YEAR
3 Adjusted net income and adjusted earnings per share (diluted) should not be seen as a replacement or superior performance indicator, but rather as additional information to the net income and earnings per share (diluted) determined in accordance with IFRS.
Infineon's segments' performance in the fourth quarter and the 2019 fiscal year can be found in the quarterly information at www.infineon.com.
All figures in this quarterly information are preliminary and unaudited.
ANALYST TELEPHONE CONFERENCE AND PRESS CONFERENCE
The Q4 Investor Presentation is available (in English only) at:
INFINEON FINANCIAL CALENDAR (* preliminary)
- 13 - 14 Nov 2019 Morgan Stanley TMT Conference, Barcelona
- 20 Nov 2019 DZ Bank Equity Conference, Frankfurt
- 25 Nov 2019 UBS German Senior Investor Day, Munich
- 5 Feb 2020* Earnings Release for the First Quarter of the 2020
- 20 Feb 2020 Annual General Meeting, Munich
- 24 - 26 Nov 2020 Investor Meetings at Mobile World Congress, Barcelona
- 5 May 2020* Earnings Release for the Second Quarter of the 2020
- 6 May 2020 Industrial Power Control Business Update at PCIM, Nuremberg
- 9 - 10 Jun 2020 Exane 22nd European CEO Conference, Paris
- 4 Aug 2020* Earnings Release for the Third Quarter of the 2020
- 9 Nov 2020* Earnings Release for the Fourth Quarter and the 2020
Further information is available at www.infineon.com
D I S C L A I M E R
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.
Due to rounding, numbers presented throughout this press release and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Bernd Hops, Media Relations, phone: +49 89 234-24123, fax: +49 89 234-154123
12.11.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||Infineon Technologies AG|
|Am Campeon 1-15|
|Phone:||+49 (0)89 234-26655|
|Fax:||+49 (0)89 234-955 2987|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||910051|
|End of News||DGAP News Service|