Infineon Technologies Returned to 3Q Net Profit Amid 'Unbroken' Chip Demand

   By Mauro Orru 
 

Infineon Technologies AG said Tuesday that it swung back to a net profit in the third quarter of fiscal 2021, while revenue continued its ascent as demand for chips shows no signs of abating amid a global supply shortage.

The German chip maker posted a net profit for the three months ended June 30 of 245 million euros ($290.9 million), compared with a net loss of EUR128 million a year earlier.

Revenue for the quarter climbed to EUR2.72 billion from EUR2.17 billion. However, coronavirus-related constraints on manufacturing capacity in Malaysia, and the aftermath of the winter storm in Texas held back revenue growth, the company said.

The company's segment result--a closely watched metric comparable to adjusted earnings before interest and taxes--rose to EUR496 million from EUR220 million, with its segment result margin, or adjusted Ebit margin, up to 18.2% from 10.1%, it said.

Infineon in May had guided for third-quarter revenue between EUR2.6 billion and EUR2.9 billion, with adjusted Ebit margin at around 18% at the midpoint.

For the fourth quarter, the company said it expects revenue of around EUR2.9 billion, with adjusted Ebit margin at around 19%.

"Demand for semiconductors is unbroken," Chief Executive Reinhard Ploss said. "Inventories are at a historic low; our chips are being shipped from our fabs straight into the end applications," he added.

Write to Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

August 03, 2021 02:11 ET (06:11 GMT)

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