Infineon Reports Third Quarter Results for 2006
Infineon Technologies AG reported results for the third quarter of the 2006 financial year. The company reported revenues of Euro 1.97 billion, broadly stable with Euro 1.99 billion in the second quarter. EBIT in the third quarter increased to Euro 49 million, up from Euro 28 million in the second quarter.
The slight revenue decrease was driven by lower revenues in the two logic segments, which were not entirely offset by increased sales at Qimonda. The EBIT increase was mainly driven by improved results at Qimonda. EBIT included a dilution gain of Euro 30 million in connection with the Initial Public Offering of Inotera Memories, Inc., which was mostly offset by impairment and restructuring charges during the third quarter.
“We are pleased with the overall EBIT development in the third quarter,” said Dr. Wolfgang Ziebart, CEO and President of Infineon Technologies AG. “While EBIT in the Automotive, Industrial and Multimarket segment normalized after the exceptionally strong second quarter, the Communication Solutions’ EBIT was negatively affected by restructuring charges and weak development in its wireless business. Qimonda again posted improved results.”
Beginning with the 2006 financial fourth quarter, Infineon will provide guidance for revenues and EBIT for its non-memory businesses. On this basis, Infineon expects such revenues for the fourth quarter to increase, driven in particular by ramp-ups of products for new customers in the Communication Solutions segment. Sales in the Automotive, Industrial and Multimarket segment are expected to increase slightly. Fourth quarter EBIT for the non-memory businesses is anticipated to improve compared to the third quarter, driven mostly by higher revenues in the Communication Solutions segment. Prior to inclusion of potential impairment and restructuring charges, EBIT in Other Operating Segments and Corporate and Eliminations is expected to remain broadly unchanged relative to the previous quarter. Additional details concerning the outlook can be found in the respective segments’ sections.
