Infineon Increases 2010 Forecast on Smartphone Sales
By Ragnhild Kjetland - Sep 21, 2010
Infineon Technologies AG, Europe’s second-largest chipmaker, raised its fiscal 2010 profitability and revenue forecast for a fourth time as it benefits from higher-than-expected sales of smartphones.
The company predicts revenue in the 12 months ended Sept 30. will rise by about 50 percent with an operating profit margin of 13 to 14 percent, Infineon said in a statement today. That compares with a previous prediction for a “mid to high” 40s percent sales growth and a “low teens” percentage margin.
Infineon shares dropped 0.8 percent to close at 4.72 euros as of 5:30 p.m. in Frankfurt trading. The Neubiberg, Germany- based company last raised its forecast on July 28.
Researcher Gartner Inc. this month raised its forecast for worldwide semiconductor revenue in 2010 to $300 billion, a 31.5 percent increase from 2009. It warned “the industry cannot maintain the momentum” in the second half of the year, or into 2011, partly because of slowing sales of computers and more competition in chips for specific applications on mobile phones.
Infineon last month agreed to sell the unit that makes semiconductors for wireless devices such as Apple Inc.’s iPhone to Intel Corp. After the disposal, Infineon will get most of its revenue from chips for power and energy-efficiency applications such as wind turbines, and from semiconductors for cars.
The wireless division “made a disproportionately higher contribution to the increase in guidance driven especially by higher than expected smartphone sales,” Infineon said today.
In the fourth quarter, sales will rise about 15 percent from the third quarter, Infineon said. The margin will be at 18 percent to 20 percent, the company said.
On Aug. 27, Intel, the world’s biggest chipmaker, cut its forecast for the third quarter, citing the weaker-than-expected consumer demand for personal computers. Infineon will report fiscal fourth-quarter results on Nov. 16. STMicroelectronics NV, Europe’s largest semiconductor maker, will release third-quarter results on Oct. 20.
