By Giulia Petroni
Infineon Technologies AG said Tuesday that fourth-quarter profit rose in spite of macroeconomic and uncertainty and weakening global auto demand.
After-tax profit for the quarter ended Sept. 30 was 161 million euros ($177.6 million) compared with EUR141 in the year-earlier period.
Revenue for the quarter rose to EUR2.06 billion from EUR2.05 billion the previous year, due to a stronger U.S. dollar and a positive performance in its power management and multimarket segment, the company /zigman2/quotes/204995926/delayed DE:IFX +2.73% said.
Infineon’s gross margin decreased to 35.5% from 39.8%, while its segment result margin--which is key for the company--fell to 15.1% from 19.5%.
“We are feeling the effects of weak global auto demand and do not expect any improvement for the time being,” said Chief Executive Reinhard Ploss. He doesn’t expect markets to recover before the second half of the fiscal year, he said.
Looking ahead, Infineon said it expects revenue growth of 5% for fiscal 2020, plus or minus 2%, with a segment operating margin of about 16%.