BERLIN (Reuters) -Infineon, a leading supplier of microchips to the auto industry, on Thursday bumped up its segment result margin outlook for fiscal 2023 to adjust for currency effects as it came in slightly below revenue expectations for its first quarter.
The Munich-based company’s revenue fell 5% from the previous quarter to 3.95 billion euros ($4.35 billion) in the quarter ending Dec. 31, slightly under the 4 billion euros expected in a poll of analysts by Vara Research published on Jan. 24.
Infineon’s segment result margin rose to 28.0% from 25.5% the previous quarter, beating expectations of 24.7%.
The company maintained its full-year revenue outlook of around 15.5 billion euros, plus or minus 500 million euros, despite a less favourable assumed exchange rate, but now expects a segment result margin of 25% from a previous 24%.
Infineon also said investments for the full year are still expected to amount to approximately 3 billion euros.
Chief Executive Jochen Hanebeck said automotive and industrial demand has been strong while there was significantly weaker demand in areas such as smartphones, PCs and data centres. “Substantial parts of our business have proved robust even in a weaker macroeconomic environment,” he said.
For the second quarter, Infineon expects revenue of around 3.9 billion euros and a segment result margin of around 25%.
($1 = 0.9084 euros)
(Reporting by Miranda Murray, editing by Rachel More)
