Infineon 4th-quarter earnings exceed estimates on sales gains
(c) 2013, Bloomberg News.
MUNICH — Infineon Technologies AG, Europe's second-largest semiconductor maker, reported fourth-quarter profit that beat analysts' estimates as the company delivered more chips.
Earnings before interest and taxes, which the German company calls segment result, totaled 148 million euros ($198 million) in the three months through September. Analysts on average projected Ebit of 134.5 million euros, data compiled by Bloomberg showed. Revenue amounted to 1.05 billion euros, less than the 1.06 billion-euro average estimate.
Infineon is pioneering production from larger-diameter wafers, which the Neubiberg-based manufacturer has said will help it manufacture 2.5 times as many chips from each slice.
Increasing production in Dresden, Germany, of chips cut from 300-millimeter silicon wafers will mean it will take some time to reach Infineon's target for a 15 percent profit margin, Chief Executive Officer Reinhard Ploss said on July 30.
Infineon shares have risen 19 percent this year, triple the gains by STMicroelectronics NV, Europe's biggest chipmaker. STMicroelectronics last month delayed its profit-margin target, citing weaker-than-expected demand for smartphones in Asia.