DGAP-Adhoc: Infineon Technologies AG: Effects of the coronavirus pandemic weigh on the outlook for the remaining fiscal year 2020, the successful acquisition of Cypress reinforces business model in medium and long term
DGAP-Ad-hoc: Infineon Technologies AG / Key word(s): Forecast Effects of the coronavirus pandemic weigh on the outlook for the remaining fiscal year 2020, the successful acquisition of Cypress reinforces business model in medium and long term The economic upheavals caused by the coronavirus pandemic make it extremely difficult to provide a reliable forecast. The outlook is therefore subject to a high degree of uncertainty. Key factors influencing the above-mentioned revenue figures are the trajectory of global infection rates and the revamping of economic activities, particularly in the automotive industry. The level and effectiveness of government support programs will also play an important role. Based on the forecast level of revenue of €8.4 billion for the 2020 fiscal year, Infineon expects a Segment Result Margin of around 12 percent. The respective existing businesses of Infineon and Cypress are likely to contribute roughly proportionately to this level of profitability. Benefits from synergies are not expected to have a noticeable effect in the short term. For the combined company, investments in property, plant and equipment and intangible assets including capitalized development costs in the 2020 fiscal year are forecast at around €1.2 billion to €1.3 billion. Hence the investment level will be taken down slightly, despite the integration of Cypress, as Infineon is reducing its expenditures for its former business. Free cash flow for the combined company will be strongly negatively impacted by the acquisition of Cypress and by the consequences of the coronavirus pandemic. Therefore, it will foreseeably turn significantly negative. Excluding cash outs in relation to the acquisition of Cypress, free cash flow is forecast to come in between a positive €100 million and €300 million. Outlook for the third quarter of the 2020 fiscal year Group performance in second quarter of 2020 fiscal year The full Press Release on the second quarter of 2020 fiscal year and on the outlook for the third quarter as well as on the full 2020 fiscal year will be published shortly. It will be provided on www.infineon.com/press. Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY). Further information is available at www.infineon.com This announcement is available online at www.infineon.com 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 press release and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. Contact: Alexander Foltin, Investor Relations, phone: +49 89 234-23766, fax: +49 89 234-9559847
04-May-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
Language: | English |
Company: | Infineon Technologies AG |
Am Campeon 1-15 | |
85579 Neubiberg | |
Germany | |
Phone: | +49 (0)89 234-26655 |
Fax: | +49 (0)89 234-955 2987 |
E-mail: | [email protected] |
Internet: | www.infineon.com |
ISIN: | DE0006231004 |
WKN: | 623100 |
Indices: | DAX, TecDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1035565 |
End of Announcement | DGAP News Service |
|
1035565 04-May-2020 CET/CEST
Infineon Technologies AG Stock
Infineon Technologies AG is currently one of the favorites of our community with 14 Buy predictions and no Sell predictions.
With a target price of 40 € there is a positive potential of 29.64% for Infineon Technologies AG compared to the current price of 30.86 €.