Infineon Hopes to Lift Sales in Q2 after Weak Q1

Infineon Hopes to Lift Sales in Q2 after Weak Q1

Looking at the year as a whole,  the company said it continues to forecast an increase in revenue of between 7% and 11%.

FRANKFURT -- Despite a weak first quarter, semiconductors giant Infineon said Thursday it hopes to lift sales in the second quarter and is sticking to its full-year forecast.

Infineon, which runs its business year from October to December, said that first-quarter sales declined, as expected, by 7% to 984 million euros (US$1.3 billion).

Net profit was down 39% at 87 million euros (US$118 million).

The decline was in line with forecast since the period from October to December is traditionally weak.

"Infineon has made a good start into the new fiscal year. Revenue has developed in line with forecast during the first quarter. Earnings were better than expected, benefitting from the efficiency measures undertaken at our manufacturing facilities," said chief executive Reinhard Ploss.

"Good order intake and positive forecasts for the global economy underpin our outlook. Infineon is poised to profitably grow in 2014," he said.

Looking to the second quarter, Infineon said sales were forecast to rise by "a mid single digit percentage, primarily as a result of higher revenue in the automotive and chip card and security divisions."

And looking at the year as a whole,  the company said it "continues to forecast an increase in revenue of between 7% and 11%.

Copyright Agence France-Presse, 2014

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