Outlook for the new fiscal year cautiously optimistic. Integration of Cypress remains on track
Infineon Technologies AG reports results for the fourth quarter and for the full 2020 fiscal year, both ended on 30 September 2020.
- Q4 FY 2020: Revenue of €2,490 million; Segment Result €379 million; Segment Result Margin 15.2 percent
- FY 2020: Revenue of €8,567 million, up 7 percent year-on-year; Segment Result €1,170 million; Segment Result Margin 13.7 percent, organic free cash flow €911 million
- Outlook for Q1 FY 2021: Based on an assumed exchange rate of US$ 1.15 to the euro, revenue between €2.4 billion and €2.7 billion predicted. At the mid-point of the guided revenue range, Segment Result Margin expected to come in at around 16 percent
- Outlook for FY 2021: Based on an assumed exchange rate of US$ 1.15 to the euro, revenue of around €10.5 billion (plus or minus 5 percent) expected. At the mid-point of the guided revenue range, Segment Result Margin expected to come in at around 16.5 percent. Investments between €1.4 and 1.5 billion are planned. Free cash flow is expected to exceed €700 million
- Proposed dividend for FY 2020: €0.22 per share (FY 2019: €0.27); reduction due to impact of corona pandemic and ongoing risks
“Infineon has successfully completed an exceptional and difficult fiscal year with a very respectable fourth quarter. We have proven that our company has a robust business model and continues to develop steadily, even in uncertain times,” said Dr. Reinhard Ploss, CEO of Infineon. “Some of our target markets, especially the automotive sector, have recovered better than expected since the summer. In addition, the structural transformation towards electro mobility is accelerating, particularly in Europe. Other markets are showing weakness, like traction or government identification, or are still a long way from recovery, such as factory automation. All in all, we are cautiously optimistic for the fiscal year that has just begun. However, the coronavirus pandemic, the geopolitical situation and prevailing macroeconomic conditions all remain challenging. The combination of a strengthened team and a broader technology and product portfolio – especially through connectivity for the IoT and other digital applications – enables us to address an even greater number of markets. We are in an excellent position to master future challenges.”