CORRECTED: Infineon raises full-year sales targets
German semi-conductors giant Infineon on Tuesday raised its full-year sales targets on the back of the weaker euro and the first-time consolidation of US rival International Rectifier.
"Based on an assumed exchange rate of $1.10 (as opposed to $1.20 previously) to the euro, Infineon forecasts year-on-year growth in revenue of 36 percent," the group said in a statement.
Infineon, which runs its business year from October to September, had already raised its full-year targets at the end of January to growth of 10-14 percent. But that did not take into account the acquisition of the US rival, International Rectifier.
Fully consolidated in mid-January, the new subsidiary already contributed 199 million euros to sales in the first quarter, the group said.
Infineon is also hoping to benefit from the weaker euro, a spokesman said.
In the January-March period, profits were down, however, as a result of the costs of integrating International Rectifier, with the bottom line falling by 45 percent to 68 million euros and operating profit down 37 percent at 85 million euros.
At the same time, revenues grew by 41 percent to 1.483 billion euros.
"Business is running very well, with additional tailwinds provided by the acquisition of International Rectifier and the strong dollar," said chief executive Reinhard Ploss.
"The signals we are receiving from our markets are generally positive. We are making good progress with the integration of International Rectifier. Our strategy is paying off and Infineon remains on a growth path," he said.
© 2015 AFP