Infineon Goes From Strength To Strength
Infineon is looking to grow 34% this year. It had calendar Q2 revenue of €1,586 million – up 7% on calendar Q1 – for a profit of €245 million at a margin of 15.4%. Infineon expects a 1% revenue increase in calendar Q3.
Between its four main operating units, revenues split: Automotive €621 million, Industrial Power Management €269 million, Power Management and Multimarket €517 million and ChipCard and Security €172 million.
Overall group operating income improved from €79 million in calendar Q1 to €119 million in calendar Q2 while net income for calendar Q2 came in at €109 million, well ahead of the previous quarter’s €65 million.
Payment of the purchase price for International Rectifier had given rise to a negative Free Cash Flow of €1,880 million in calendar Q1.
Net cash provided by operating activities from continuing operations rose from €135 million to €432 million. The gross cash position went up from €1,656 million on March 31, 2015 to €1,842 million at the end of calendar Q2. The net cash position improved over the same period from a negative amount of €176 million to stand at a positive amount of €49 million at June 30, 2015.
Infineon is now back within the target range for its three capital management objectives, namely gross cash of between 30 and 40% of revenue, a positive net cash position, and a moderate level of debt.
Investments during the 2015 fiscal year are expected to be in the region of €800 million, including €60 to €70 million for readying the second shell in Kulim, Malaysia, for volume production and €21 million for the purchase of Qimonda patents from the insolvency administrator.