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International Rectifier lifts Infineon's Q4 profit
[FRANKFURT] Auto and industrial chip maker Infineon's posted higher-than-expected fourth-quarter operating result and promised a revenue rise for the new year at the high end of analysts' expectations.
Infineon, whose chips activate car airbags, enable cruise control, manage power supplies and cut vehicle emissions, said it expected 2015/16 revenues to rise between 11 and 15 per cent from 5.8 billion euros (S$8.7 billion) last year.
That compares with an 18 per cent rise in 2014/15, excluding the US$3 billion acquisition of its US peer International Rectifier, which Infineon completed in January.
The outlook implies revenues of between 6.43 billion and 6.66 billion euros, which is above the average expectation of 6.4 billion in a Reuters poll, with estimates of 16 analysts ranging between 6.15 billion euros and 6.63 billion.
Infineon said its power-management chips, which account for about a third of total sales, would grow faster than the group's average, while its automotive chips, which account for almost 40 per cent of sales, would grow more slowly.
Infineon's fourth-quarter operating profit rose 52 per cent to 286 million euros, helped by currency effects and a 15 per cent margin from International Rectifier, beating the most optimistic estimate in the poll.
Infineon shares were indicated to open 3.1 per cent higher, while the German blue chip index was expected to rise 0.1 per cent at the 0800 GMT market open.