Salem Radio Network News Friday, August 19, 2022

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Infineon quarterly revenue beats, lifts 2022 outlook on chip demand

BERLIN/STOCKHOLM (Reuters) -Infineon, the leading supplier of microchips to the auto industry, on Wednesday reported a rise in third-quarter revenue and lifted its full-year outlook as it continues to benefit from a global shortage of semiconductors.

The Munich-based company’s revenue grew to 3.62 billion euros in the third quarter, exceeding the 3.42 billion euros expected in a poll of 20 analysts by Vara Research.

Infineon raised its 2022 revenue for the third time by 500 million euros ($509 million) to around 14 billion euros, forecasting fourth-quarter revenue of 3.9 billion euros, ahead of expectations of 3.65 billion euros.

Rival STMicro had also reported quarterly revenue ahead of expectations and lifted its 2022 revenue forecast.

Infineon had benefited from a tailwind due to a global shortage of semiconductors but several chipmakers have recently warned that demand is easing.

“Increases in energy costs, raw material prices and interest rates, the continuing pandemic and geopolitical uncertainties are all impeding economic growth,” Chief Executive Officer Jochen Hanebeck said in a statement.

“In some consumer-oriented end markets demand has recently weakened,” he said.

The company had also reported operating profit to 690 million euros, beating expectations of 679 million euros.

($1 = 0.9824 euros)

(Reporting by Kirsti Knolle in Berlin and Supantha Mukherjee in Stockholm; Editing by Maria Sheahan and Terje Solsvik)

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