Infineon reports profit leap, raises forecast

3rd May 2011, Comments 0 comments

The German computer chip maker Infineon said on Tuesday that its second-quarter net profit leapt seven-fold owing to a major asset sale, and raised its outlook for the second time.

Infineon posted a net profit of 572 million euros ($849 million) for the three months from January to the end of March, the second quarter of its fiscal year, compared with just 79 million euros in the same period last year.

The result was boosted by the sale of Infineon's wireless division that made parts for mobile telephones, to the US group Intel for $1.4 billion.

The sale was first announced in August but has now been finalised and contributed a net profit of 378 million euros, a statement said.

Sales rose meanwhile by 27 percent to 994 million euros, and Infineon said it expects them to rise by a further 20 percent this year, an increase from a previous estimation of about 15 percent that was itself already revised upwards.

The company is benefiting in particular from stronger demand in the auto sector, which is a big consumer of precision electronic components.

© 2011 AFP

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