DGAP-Ad-hoc: Infineon Technologies AG / Key word(s): Forecast
Infineon withdraws outlook for FY20; economic impact resulting from coronavirus pandemic can currently not be reliably assessed
Protecting the health and safety of employees and business partners continues to be of highest priority for Infineon. The quick and decisive implementation of precautionary measures with respect to hygiene and social distancing has helped to ensure business continuity. All major worldwide manufacturing sites of Infineon are currently operational, some at reduced loading levels. This includes fabs in jurisdictions where government-imposed lockdown regulations are especially strict, such as Malaysia or California. At the moment, sufficient procurement of raw materials is in place. Logistic chains including alternative freight routes have been set up for continuous deliveries to customers. Also, research and development, marketing, sales and administrative areas stay functional, largely by working remotely from home offices.
For the current quarter ending on 31 March, revenue is expected to come in around the lower end of the guided range.
The second half of the 2020 fiscal year will be impacted by the negative economic consequences of disruptions caused by virus containment measures across several of Infineon's key endmarkets and regions. The number of cars produced and sold is predicted by market researchers to decline considerably in all major markets compared to 2019, caused by a combined supply and demand shock: several leading automotive OEMs and Tier-1s have announced temporary shutdowns of their production facilities in Europe and in the U.S. The situation in China appears to normalize slowly. Furthermore, automotive customer demand is negatively affected by stay-at-home regulations in a multitude of countries. Also market expectations for several industrial applications are being meaningfully reduced. In contrast to this, certain areas of Infineon's business are holding up comparatively well amid current turbulences. This applies to products for datacenters and communications, driven by the surge in online collaboration and data traffic. In general, fiscal and monetary responses by governments and central banks will take time to show effect.
The management of Infineon is monitoring the situation closely, has implemented a coronavirus crisis management and is prepared to react in an agile way. Infineon expects to be able to give a comprehensive business update in its next quarterly earnings call on 5 May, 2020.
D I S C L A I M E R
This announcement contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group.
These statements are based on assumptions and projections resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks. Actual business development may therefore differ materially from what has been expected.
Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements.
Due to rounding, numbers presented throughout this announcement and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Alexander Foltin, Investor Relations, phone: +49 89 234-23766, fax: +49 89 234-9559847
26-March-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
|Company:||Infineon Technologies AG|
|Am Campeon 1-15|
|Phone:||+49 (0)89 234-26655|
|Fax:||+49 (0)89 234-955 2987|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1007877|
|End of Announcement||DGAP News Service|
1007877 26-March-2020 CET/CEST