Infineon Posts Shaky Q2
EBIT (earnings before interest and tax) decreased to Euro 10 million, down Euro 243 million year-on-year and down Euro 436 million from the previous quarter of this year, which included an one-time pre-tax gain of Euro 202 million. Infineon’s lower earnings were mainly due to the continued fall of prices for memory products and the slowdown in the demand for mobile handsets. Net income in the second quarter was Euro 23 million, down Euro 123 million from the same quarter of the last fiscal year and Euro 257 million from the previous quarter of this year. Earnings per share (basic and diluted) for the second quarter was Euro 0.04 as compared with Euro 0.24 in the second quarter of the last fiscal year and Euro 0.45 in the previous quarter of this year.
“Infineon maintained strong margins in its non-DRAM businesses -- Wireline Communications, Security & Chip Card ICs and Automotive & Industrial -- despite a difficult market environment due to continued demand in these segments, further productivity gains and new high-margin products”, commented Dr. Ulrich Schumacher, President and CEO of Infineon Technologies AG. “Furthermore, our strategy to optimize our product portfolio by building on these businesses is showing positive results as they help to counterbalance the current weakness in the memory market.”